QuickBooks has a feature that permits creating an invoice from expense and items entered on bills, checks and credit card charges. By using this process expenses will not be missed. Here's a quick overview of the process.
Enter the amounts due to vendors
- When entering the expenditures, be sure to enter the appropriate customer in the name column. The icon next to the name is an invoice, when it is white it is billable, when it is grey, it has been invoiced, when it has a red "X" over it, it will appear on job costing reports but will not be billable. The expense tab and item tab both permit job costing the expenditure.
Review the amounts to be invoiced
- There are primarily two reports that can be used to review the amounts waiting to be invoiced, prior to actually generating an invoice. The first is the Unbilled Costs by Job. This report includes both items and expense. The second is the time by job report, that should be modified to include the date range of all and the billed status of unbilled. The later is only hours. There is no way in QuickBooks to generate a true "work in process" report that includes items, expenses, and time as dollars (i.e. time x sales price). The only alternative we are aware of for those businesses using the time features of QuickBooks is an Excel AddIn product from Big Red Consulting called WIP Reports for QuickBooks
. A free trial
is now available.
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Bonnie J. Nagayama, CPA (925-247-0100) has been featured by Intuit in their QuickBooks Advisor Spotlight and frequently teaches and consults on using QuickBooks to its maximum advantage. For a FREE weekly newsletter of QuickBooks tips and tricks, plus many free and low cost QuickBooks resources visit www.4luvofbiz.com.