Any book-keepers/accountants out there that could give me a quick bit of advice please?

[goldenticket]

My invoices are usually just for my time, but I've got one to do that includes some travel expenses. I cannot get my head round how to do this! For example, I would normally pay for a train ticket by debit card and it would appear on my bank statement and I could then reconcile it. The train ticket then just appears as an expense under travel. But if I'm charging it to the client, how does it not appear twice in my accounts, once on the invoice and once on the bank statement??

Does this make sense? I've been putting off sending this invoice for WEEKS because of this! Am using Quickbooks.

Please help!

It will be a bit dependent on your accounts package, but in all the systems I've used it would be entirely correct for it to appear twice. Once as expenditure and again as something you've invoiced the customer for (it doesn't even have to have the same amount - unless you agreed that you would pass on expenses 'at cost').

The only other complication for expenses is VAT - if you're not VAT registered and the customer is then they may want you to just give them the receipt for you to be reimbursed by them directly.

However, as this is a train ticket there is no VAT on it anyway.

Thanks both of you for replying.

I understand what you're saying covkimbo and I guess I should check with my accoutant as to how it should be dealt with.

neilsboar - wouldn't entering it twice just cancel each other out though?? This is what I doon't understaaand

remember that the amount in your tax accounts is the invoice, not the payment of it

sales invoice = income
sales receipt = reduction in debtors / increase in bank balance
purchase invoice (train ticket) = cost of sales
bank payment = reduction in creditors / decrease in bank balance

However, as this is a train ticket there is no VAT on it anyway.

There is if you are VAT registered and you charge it to the client - you must add VAT because you are not making a zero-rated supply of travel, you are making a standard rated supply of your services.

I'm not VAT registered so that's not an issue I think.

So basically, I cannot post the expense against travel on the invoice, I need to put it as Reimbursed expenses yes? Then what will the accountant do with it? But it would be handy for me to see what the expenses were for on the invoice which is why I'm tying myself in knots with this IYSWIM.

Grr

OK

DH goes to London for the day

his invoice reads Fee + congestion charge + parking = total
they pay the total

in his expenses folder is the parking receipt + the congestion charge bill + fuel bill + all his other costs

leaving a net profit ....

Have a look at my ebay me page - it shows how accounts are laid out so may help clear your head a bit ...

So if you pay yourself for travel you go

Dr Travel expenses
Cr Cash

Then when you invoice you go

Dr Debtors (full invoice amount)
Cr Sales (Income in P&L) y (being main part of invoice)
Cr Travel expenses z (being travel part of invoice)

Then when they pay you go

Dr Cash (full invoice amount)
Cr Debtors x (full invoice amount)