Assigning an expense

Lianne

I have a question about how to appropriately assign an expense for an online service I use to conduct online psychometric assessments. I pay for the service on behalf on clients in the form of purchasing credits and include the cost in their fee. Should this be consider an outsourced service provider? cost of materials? or just general admin? Thanks!
Lianne

Barsin

Hey there @Lianne

Wondering if you can elaborate a little more on this type of expense you're purchasing. Sounds like you're looking to claim reimbursable expenses on your income from your clients. Are you doing this using an invoice? If so have you checked out our help center article on CLAIMING REIMBURSABLE EXPENSES ON YOUR INVOICES.

This article tells you to create an "other income" account.

Have a read and let us know if you have any questions or wouldn't mind clarifying a bit more on the transaction with a use-case scenario.

Lianne

Thanks for responding. I've been capturing this expense under general operational expenses and prefer to handle it that way. I was simply wondering how to categorize the expense. General admin? Materials? Outsource Service Provider? I purchase a block of credits from the psychometric company that generates reports on behalf of clients. I pay for the service in advance and then incorporate a cost into the fee. Is there a way to categorize that under Operational Expenses?

JulianP

Hello @Lianne !

In this case, my suggestion here is to create a new expense account for Psychometric Assessments to track the actual item itself. Ideally, the more specific you get with your expenses, the better. I hope that helps!