Glossary
Billable expenses
Also called: reimbursable expenses · pass-through expenses · expense markup
Billable expenses are costs a provider pays on a client's behalf — stock photos, software licences, travel, print — and recharges on the invoice, either at cost or with an agreed markup. They are listed separately from fees, supported by receipts, and must never be billed twice.
Last updated October 13, 2026
What qualifies
Anything purchased specifically for the client's project that the agreement says is recoverable: third-party assets, domain and hosting fees, plugins, travel to the client's site, courier and printing. Your own tools and general overhead are not billable expenses; they are covered by your rate.
At cost or with markup
Passing expenses through at cost is simplest and least contentious. A markup (commonly 10–20%) compensates for the time, cash float, and risk of buying on the client's behalf and should be disclosed in the contract. Either way, keep the receipt and attach it to the invoice so the client can verify the amount.
On the invoice
Group expenses under their own heading, one line each with date and description, separate from time and fees. Record each expense once and mark it billed when it reaches an invoice so it cannot be charged again on the next one. Tax treatment of recharged expenses varies by jurisdiction; check whether tax applies on the recharge.
In Hoursmith
Expenses in Hoursmith are logged against a client with a category and up to 10 receipt files, marked billable, and pulled onto an invoice in a click under their own Expenses group. Billed expenses can never be double-billed, and receipts can be attached to the invoice as supporting documents.