20 Apr Extend: a solution help you manage your client billable expenses
Do you often purchase items for your clients and then bill them after the fact? These billable expenses have a tendency to wreck your cash flow and make bookkeeping messy. Luckily, I’ve discovered a solution! Extend allows you to create unlimited virtual cards to manage your client billable expenses. Keep reading to find out how you can create virtual cards from your existing company credit card and manage spending with better control and efficiency.
Who can benefit from using Extend
This solution is particularly useful if you have direct billable client expenses, meaning that your business is responsible for purchasing on behalf of your customer and then charging them back for it. These types of expenses can be really hard on cash flow. With Extend, the billable client expenses go directly to the client and don’t necessarily mess with the business’s cash flow.
One our clients at Reconciled Solutions, a creative services firm, discovered this app and it has been a game-changer for their business. They resell services such as Facebook, social media and Instagram ads on behalf of their clients, and then charge them back for it.
How Extend works
First, your business needs to have an American Express or other compatible credit card. You hook it up with Extend, you can create a sub-account within your American Express that is called Reconciled Solutions. Then every time you charge a bill to the client, it goes in through American Express, and you can recognize it in American Express that this is for Reconciled Solutions.
The transactions then feed into your QuickBooks Online via that bank feed, and in QuickBooks, you can mark it as a billable expense to the client. You can even add a markup on it if you want to add a small markup for it.
To add a transaction to QuickBooks Online, you need to categorize it and add the vendor. You can create an account for the cost of doing business and mark it as a client billable expense. You can then assign the customer it should be attached to, and mark it as a billable expense.
Overall, Extend is a powerful solution that can be super helpful for businesses with direct client billable expenses. It’s especially useful in creative and tech services, where the services purchased on behalf of clients need to be billed back to them. With Extend, businesses can better control their cash flow and manage their expenses with more efficiency.
Looking for customized solutions to help you manage your client billable expenses and books more efficiently and effectively? We’d love to help!