Guide · 6-minute read
Track the expense once—and keep the receipt with it.
Client costs become hard to bill when the amount, purpose, receipt, and project context live in different places. A small capture-and-review routine keeps reimbursable expenses clear without turning your billing tool into accounting software.
Last updated August 18, 2026
Capture the evidence at the moment of purchase
Record the date, vendor or plain-language description, amount, currency, client, category, and why the cost belongs to the engagement. Attach the receipt or invoice while it is still in front of you. A folder full of images with no client context is only slightly better than no record at all.
Use categories for filtering, not as a substitute for a useful description. “Travel” is a category; “Train to client workshop” is an explanation. Keep personal card numbers, full bank details, and unrelated purchases out of the attachment before it becomes client-facing evidence.
Decide billability before invoice day
Mark whether the client reimburses the expense according to the engagement terms. Some costs are included in a fixed fee, some are passed through at cost, and some carry an agreed handling charge. The tool should preserve that choice; it should not infer a policy from the fact that a receipt exists.
Review unbilled expenses with the project lead before creating the invoice. Correct the client, amount, category, and evidence while the record is still mutable. Once the charge is part of a sent invoice, preserving the commercial snapshot matters more than silently editing history.
Present costs without overwhelming the client
Group expenses separately from time and fixed fees. Use descriptions a client can reconcile to the work, and attach only the receipts relevant to that invoice. A client-safe supporting bundle should prove the charge without exposing internal notes, unrelated receipts, team rates, or other customers’ information.
Prevent double billing with a source link from expense to invoice. If a draft is cancelled, the expense can become available again; if the invoice is sent, the source should stay locked. That lifecycle is safer than tracking reimbursement with a checkbox in a spreadsheet.
How Hoursmith does it
How Hoursmith handles client expenses
Expenses are available on every plan. Record them against a client, use built-in or custom categories, attach up to ten receipt files, and decide whether they are billable. Eligible costs appear in the invoice builder as a separate expense source.
A billed expense cannot be billed twice. Selected receipts can travel with the invoice as supporting documents, while the sent invoice and its source links remain immutable. Hoursmith does not provide mileage, employee reimbursement approvals, bookkeeping, or tax filing.