Tallie’s integration with QuickBooks Online makes it incredibly easy to bill your clients for direct expenses. We’ll teach you how to set up Service Items, use Markups and invoice clients with the expense and receipt.
Part One: Setting up Service Items
Service Items are what shows up in the “Product/Service” column on an invoice. They also dictate the accounts that the expenses will be booked to.
To set up your Service Items in QuickBooks Online, go to the Settings cog in the upper right-hand corner and then click on All Lists. Once there, click on Products and Services. From here, you can create a new Service Item by clicking New. Once it’s brought up, make sure you click “I purchase this product/service from a vendor,” which is key – it’ll bring up an area to enter an expense account. This way, you can map Expenses to Service Items that, in turn, are mapped to the appropriate Income and Expense accounts. Likewise, you can control the invoice description and make the expense, when added to an invoice, look fantastic.
Here’s an example. Let’s say you’ve negotiated travel reimbursement with a client. You would probably set up a Service Item like the one below.
Part Two: Markups
If your organization will mark up the billable expenses, you’ll need to enable this option. In QuickBooks Online, go to the Settings cog in the upper right-hand corner, click Company Settings, and then click Expenses. In the Bills and Expenses area, click the pencil edit icon towards the right. With these settings open, check off “Markup with a default rate of” and feel free to leave the option blank if you don’t have a default markup percentage.
Now, when you have Bills or Checks exported from Tallie, you can either use the default markup percentage you created, or easily add a markup percentage directly to the line item. Going forward, the markup percentage will be applied as billable expenses are added to an invoice.
Part Three: Invoicing Billable Expenses
You’ve collected your expenses in Tallie, exported them to QuickBooks Online and possibly applied a markup. Now you’re ready to invoice your client. The easiest way to do this, in my opinion, is to go to your Customer list and start an Invoice. On the right-hand side of the new invoice, you can easily add any billable expenses you’ve imported.
One of the great features of Tallie is that we also bring the original receipt into QuickBooks Online, so if you’d like to add it as an attachment on the invoice, simply put a checkmark next to the attachment name and send it out.
Your client will receive the invoice in their inbox with a description created by you via the Service Item, markup applied, and the original receipts attached. It’s easy, fast and the complete package!
To see for yourself how Tallie can improve your accounting workflow, click here to start your FREE 14-day trial. No credit card or commitment required. If you have any questions about our award-winning expense management software, feel free to contact our team at firstname.lastname@example.org. Schedule a free product demo with one of our experts today!