#11 Stop Absorbing Cost That Client Should Pay
One of the easiest ways of losing profit in a business isn't losing a customer. It's forgetting to include the expenses that are incurred for half of your customers.
Individually, they may seem small.
Moreover, if you're not tracking them properly, your business quietly absorbs costs that should have been recovered.
The expenses module in Zoho Invoice helps ensure that project-related costs don't get lost between work and sending the invoices.
Go to Expenses -> +New Expense
Capture:
Expense amount
Vendor
Expense date
Category
Receipt
Customer (if billable)
The moment an expense is marked as billable, it can later be added directly to an invoice.
Common Queries Around Expense Tracking
"I purchased a stock image for a client's marketing campaign. How do I charge them for it?"
Record the expense and mark it as billable.
When creating an invoice, you can add the expense directly rather than remembering it later.
"I travelled to a client site for installation work. Can I bill the travel expense?"
Yes. Add it as a mileage expense, associate it with the client, and mark it as billable.
The expense can then be included in the final invoice.
Record the purchase as an expense and associate it with the customer project.
When invoicing, the expense can be added alongside labour charges and service fees.
"We organized an event and incurred venue, printing and logistics costs. How do we recover everything accurately?"
Upload every bill as an expense as soon as it is incurred.
When the event is over, all billable expenses can be added to the invoice without searching through emails, spreadsheets or receipts.
Before your team starts recording expenses regularly, spend a few minutes reviewing your Expense Preferences.
Ask yourself:
Do employees need to be associated with expenses?
Do you track travel and mileage costs?
Do you need custom fields to capture project or customer information?
How will your team identify billable expenses?
Go to Settings -> Expenses to configure mileage expenses and other expense categories.
Things to Remember
Not every expense needs to be entered manually.
Depending on how your business operates, you can add expenses in different ways:
Create an expense individually as the cost occurs.
Add multiple expenses at once using Bulk Add Expenses.
Import historical expenses from spreadsheets.
Record project-related expenses and associate them directly with customer work.
Track mileage expenses based on distance travelled, GPS tracking, and odometer readings for client visits, installations, and service trips.
Pro Tip: Upload receipts when creating expenses. This creates a helpful audit trail internally and makes it easier to answer customer queries later.
Watch out: Many businesses track expenses but forget to mark them as billable. As a result, the expense gets recorded and the customer gets invoiced, but it never makes it onto the invoice, and that's money left on the table. Every billable expense captured protects your profit margin.
Important Links:
Configure & Manage Expense Category: https://www.zoho.com/invoice/help/expense/expense-tracking.html#expense-categories
Set Mileage Preference: https://www.zoho.com/invoice/help/expense/preferences.html
Record Reimbursements: https://www.zoho.com/invoice/kb/expenses/record-reimbursement-expense.html
Invoicing an Expense: https://www.zoho.com/invoice/help/expense/reimbursable-expense.html