Easy Tech TutsHow to Record Reimbursable Expenses in QuickBooks Online Easily 2026
By Impran M N
Covering a client's materials or travel costs upfront only works if you actually pass those costs back onto their invoice. This guide shows how to enable billable expense tracking in QuickBooks Online and turn logged costs into client charges.
01Enable billable expense tracking
Go to Account and Settings, open the Expenses tab, and toggle on Make expenses and items billable.
02Record the upfront expense
Click + New, select Expense, choose your merchant, and pick the source bank or credit card account.
03Mark it as billable
Enter the category and cost, then check the newly visible Billable box and select the target customer.
04Save the expense
Review the details and click Save and Close to log the upfront cost against that client.
05Invoice the client
Create a new Invoice for that customer, and pull the pending billable expense into the invoice from the Add to Invoice sidebar tray.
Frequently asked questions
Do I need to turn on a setting before I can bill expenses to clients?
Yes, you first need to enable Make expenses and items billable under Account and Settings in the Expenses tab.
How does QuickBooks know which client to bill?
When you check the Billable box on an expense, you also select the specific customer it should be tied to.
Can I add a billable expense to an invoice after the fact?
Yes, when creating an invoice for that customer, pending billable expenses appear in a sidebar tray you can add with one click.
How do I check my reimbursable expense margins?
Run the Profit and Loss by Customer report to verify that billed expenses balance out against the original costs.
Watch the full walkthrough
The same steps, demonstrated on screen from start to finish.
