Billable expense income

[inclusiveweb]

Hi there,

I am the sole employee and director of my limited company and a client has asked me to estimate expenses and bill for these up front. The excess that I don’t reimburse to myself to cover the costs of travel & subsistence will become income. I wondered if I should categorise this under ‘General sales’ or set up a new category? Something like “Billable expense income”, which is a category I think Quickbooks might use.

Any suggestions on the best approach?
I guess it probably doesn’t matter too much if I lump it all as General Sales, but I wanted to distinguish between the money I receive for the services I deliver and the money I receive to cover expenses, so I have a better idea of my earnings and can keep expenses set aside for reimbursment.

Thanks,

Jess

[ian_roberts]

My rule of thumb is if in doubt it’s always easier to record more detail now and then simplify later if you find you didn’t need it, than have to reconstruct details later that you didn’t record at the time.

So in this case I’d tend towards recording it on a separate nominal code for now, it’s a two minute job to merge it into general sales at a later date if appropriate.

[inclusiveweb]

Thanks Ian.

That’s great to know. I created 3 nominal accounts that I intend to use for my reporting. One for this and the two others relate to the different services I sell.

Thanks for the feedback.

Jess