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Sun Mar 03 2024

5 min read

4 Most Frequent Billable Expense Income You Might Not Aware Of

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billable expense income

You know that there are no shortages of invoices, costs, receptions, and tracking payments as a freelancer or small business owner. In the end, it may cost you huge bucks if you do not remain organized and keep thorough records. But are you tracking your billable expense income? If not, without even knowing it, you might already lose money.

However, you may not track your billable expense income because you do not know what this term means. How can you follow that up and ensure that you are compensated if you don’t know what this income is? In this article, we have discussed the term billable expense income in-depth and how it is essential in terms of saving money.

What is billable expense income?

Many businesses do not have incurring expenses. These expenses are often the cost of normal operations. These include payment for access to the Internet, office supplies, or licensing of software. These purchases are typically called business expenses. However, sometimes a company buys from a customer. It’s called a Billable Expense when such a purchase is made. Revenues on expenses are the money paid for expenses incurred on behalf of a customer. Sound unclear? Think of it as follows:

Imagine you’re working as a web designer independently. Your current client is not web-savvy and does not have a domain or site name. To move the project forward, your options are:

  • Payout your pocket to register your domain and lose the money.
  • Direct your customer to register and access your domain name.
  • Pay the domain record out of your pocket and ask the customer to refund it.

As you can see, in the freelancing world, the concept of the Billable Expense income is quite common. After all, it is a recipe for disaster to ask your client to order the goods or services you need to complete your project. And you’ll soon eat your income if you pay for these things out of your pocket. In the end, just shopping for yourself and charging the customer later is much more manageable.

How to include billable expense income in the contract?

It is important to note that Billable Expense expenditure income is not guaranteed before we go any further. From the beginning, your contract must include reimbursement for purchases made in the name of your customer. The handling of billable costs within a contract depends mostly on the existing conditions of the document if you don’t know how to cover expenses. Contract refunding is the best way to cover your bases when talking to an attorney.

Billable expense income sources

Four of the most frequent sources of billable expenses are here that you may not be aware of:

Client communication

We all have our skills as freelancers. For some, mixing music for a future commercial may be necessary. For others, the code of a new app may be dissected. Somebody asks what you’re doing for work; probably you would give your craft – whatever it’s – as a reply. What if you sell yourself short? What if this means? You have a reasonably good chance.

You may spend most days sitting or carving in your woodworking studio before a graphic design program, but that’s only part of day-to-day work for an independent. You must also spend time talking to prospective and existing customers if you want to make money. You should already be responsible for checking your customers’ fees (including customer communication) on your contract if you charge them a flat fee.

However, if you charge per hour, you must track the project for a customer every minute you spend. This includes email replies, face-to-face speeches, or a conference call. If you fail to track out such time and include it in your invoices, then you must give away a big part of your service for free.

Research and planning

Once in a while, the stars are perfectly aligned, and the project of a client is unbelievably easy. This is, unfortunately, not the norm. Instead, hours of market research, rough drafting, and customer reviews are required for a successful project. It’s easy to declare your first concepts not valid if you work in a creative field.

Work. And Work. And Work! The same applies before plunging into a customer’s project for market research. However, remove those things, and your work’s final product falls entirely apart. Researching the work assigned is a very important aspect of any business and requires much time; therefore, you can charge for it in your billable expense income. 


From how many people we pay, the Internet has changed the world of freelance. However, as almost any freelance company or small business owner knows, approval of online payments can be a hefty payment. The listing of these fees as a billable expense income can be an efficient method of saving money, effectively shifting the cost of paying your customers online.

Travel costs

Customers can come from all over the world, particularly if communicating easily across the oceans, time zones, and even languages are so easy. In some cases, it is, however, necessary to travel for meetings or on-site to take on a long-distance client. Most people are aware that the employer pays employees for business travel. You have no employer to cover those costs if you are self-employed. But you got a customer. 

However, your check-in revenues are not confined to airfare and hotel rooms. The kilometre from your vehicle is one of the most common examples of checkable costs. Even in the same city as you, your clients can quickly add up to this milestone. Travel expenses as billable expense are very common; just make sure that you and your customer are both on the same page. Again, before going forward, all travel arrangements and refund deals should be set down in the contract.

Final words

All in all, you should give your billable expense income extra attention. If you are left unaware, then part of your revenue may be lost because of the payment of customer expenses. So ensure that your billable expense income is monitored by invoicing software and billed by your customers to avoid financial difficulties.