Billable Expenses

Billable expenses are costs that your business incurs on behalf of a customer, with the expectation of being reimbursed. These expenses can include materials, external services, travel costs, and any other expenses you intend to pass on to your customers. Manager.io allows you to track these expenses efficiently and invoice your customers accurately.

This guide will help you understand how to enable and use the Billable Expenses feature in Manager.io.

Enabling Billable Expenses

To start using Billable Expenses, you need to enable the feature in your settings.

1. Navigate to the Settings tab in Manager.io.
2. Click on Billable Expenses.
3. Check the Enabled checkbox to activate the feature.

Once enabled, a new account called Billable Expenses will be added to your Chart of Accounts under asset accounts on the Balance Sheet.

Configuring the Customers Tab

To monitor billable expenses associated with your customers, you can customize the Customers tab to display uninvoiced amounts.

1. Go to the Customers tab.
2. Click on the Edit Columns button.
3. Enable the Uninvoiced column by checking the box next to it.

With the Uninvoiced column active, you can easily see which customers have associated billable expenses that have not yet been invoiced.

Recording Billable Expenses

You can record billable expenses through various transactions such as Payments, Purchase Invoices, and Expense Claims. Here's how to allocate an expense to a customer:

1. Create a new transaction (e.g., Payment, Purchase Invoice, or Expense Claim).
2. Select the Billable Expenses account in the account selection dropdown.
3. Choose the appropriate Customer from the customer dropdown to allocate the expense.

By allocating the expense to the Billable Expenses account and specifying the customer, Manager.io tracks the amount as an asset that will be reimbursed.

Understanding the Accounting Treatment

The Billable Expenses account is an asset account on your Balance Sheet. Recording expenses here does not immediately affect your Profit and Loss Statement. This treatment ensures that expenses you expect to be reimbursed do not inflate your income and expenses prematurely.

When you invoice the customer for the billable expenses:

• The amount moves from the Billable Expenses asset account to your income accounts.
• The expense is recognized in your Profit and Loss Statement when incurred.
• The reimbursement from the customer offsets the expense, accurately reflecting your financial position.

Invoicing Billable Expenses

After recording billable expenses:

1. Navigate to the Customers tab.
2. Select the customer with uninvoiced billable expenses.
3. Create an invoice for the customer, including the billable expenses.

Manager.io will automatically suggest billable expenses to include on the invoice, ensuring you don’t overlook any amounts due from the customer.

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By utilizing the Billable Expenses feature in Manager.io, you can accurately track expenses incurred on behalf of your customers and streamline the reimbursement process. This ensures transparency and efficiency in your billing practices.