How To Set Up Unbilled Charges/Expenses in QuickBooks Online

Unbilled Charges (or Unbilled Expenses) are a good feature available in QuickBooks Online. They essentially allow you to track purchases that you would ultimately like to bill to your customer. This feature should be a surefire way to increase your income. The majority of this video is dedicated to how to set this feature up in a customizable way that works for you and your business. This is because once the setup is complete, the workflow of using the feature is pretty straightforward. We do though go over the workflow itself post setup in this video as well. The default way that QuickBooks Online wants you to set this feature up is by using the Settings in order to choose income accounts for the billable expense itself and the markup income. Then, you go into your Chart of Accounts and edit some expenses you want to use for this feature and check an Unbilled Expense checkbox and then assign the Income Account. However, currently, in some current Chart of Accounts experiences (these vary based on your profile, you may have a newer or older Chart of Accounts experience currently assigned to your file) you may not see this checkbox in order to finalize setting this up, especially if you would like to assign all of these billable expense categories to more than one income account once they are ultimately sold. I present in this video an alternate workflow I’ve found that bypasses the editing on the Chart of Accounts requirement. This workflow is more manual, but bypasses this current error and also is very customizable to make it work for you and your business. The process, in summary, is first making sure you have an expense and income account created in your Chart of Accounts where you would like to categorize these transactions. Then, you create a new item(s) in your Product/Services list and then manually assign the Income and Expense accounts associated with that particular item when both buying and selling the item. After that setup, the rest of the workflow is the same as the default method.
Link to schedule a one-on-one Zoom video 1 hour training session with Gunnar:
calendly.com/e...
Thank you for watching my videos. My name is Gunnar Harris and I am the owner of Essentially Intentional, LLC. I provide financial bookkeeping and accounting training for small business owners.
One of the best ways that you can help me is by signing up for my email newsletter so that I can reach you directly with free training resources without having to rely on social media algorithms. You will immediately receive free access to download the following training materials:
Small Business Foundation eBook
Daily Sales Accounts Checklist
1 Hour Webinar “The Quick about QuickBooks Online”
Once signed up, you will periodically receive:
Free training resources sent directly to you
Updates on new ecourse progress/release dates
Temporary discount codes only sent to email subscribers
Updates on my journey of completing my “Life Goals List”
If interested, click the link below:
www.essentiall...
Link to schedule a one-on-one Zoom video 1 hour training session with Gunnar:
calendly.com/e...
Finally, also available is an online course titled “The Essentially Intentional Bookkeeping Course”. On offer for you is a discount code to be applied for 5% off!
Code: EITH-cam5
If you would like to check out the course then click the link below. From there you can find the link to purchase and when checking out, you can copy & paste the code above for your 5% off discount as your gift from coming here from TH-cam.
www.essentiall...
Thank You!

[@glenw.3813]

Thanks for sharing...it would be nice that QBO stop changing things when they work. I don't like the new COA.

[@essentiallyintentional]

I agree. I try to not be resistant to change, but I agree, I do not see the new Chart of Account experience change as an upgrade, probably even a downgrade in my opinion.

[@Instasignsusa]

can this be done on estimates instead of invoices

[@essentiallyintentional]

I could be wrong about this, but I don't think so. I think QBO currently only allows the delayed charges to only be carried over to invoices and not estimates.