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Expense Tracking

Books tracks business expenses through the accounts payable module. Record vendor bills, manage expense categories, attach receipts, and pass billable expenses through to client invoices.

Expense Categories​

Books uses these built-in expense categories:

CategoryDescription
TravelFlights, rental cars, fuel
MealsBusiness meals and entertainment
LodgingHotels and accommodations
TransportationTaxis, rideshares, parking
MileageVehicle mileage reimbursement
Office SuppliesPaper, toner, desk supplies
SoftwareSaaS subscriptions and licenses
HardwareEquipment purchases
TrainingCourses, certifications, conferences
Professional ServicesLegal, accounting, consulting
CommunicationPhone, internet, postage
SubscriptionsRecurring service subscriptions
MaintenanceRepairs and maintenance
UtilitiesElectric, water, gas
InsuranceBusiness insurance premiums
TaxesBusiness taxes and fees
OtherUncategorized expenses

Each category maps to an expense GL account for accurate financial reporting.

Creating an Expense (Via Bills)​

Expenses in Books are recorded as vendor bills:

  1. Navigate to Accounts Payable > Bills
  2. Click New Bill
  3. Select the vendor (or create one inline)
  4. Enter the bill number (from the vendor's invoice)
  5. Set the bill date and due date
  6. Add line items with the appropriate expense GL account
  7. Attach a receipt image if available
  8. Click Save

Bill Statuses​

StatusDescription
DraftNot yet finalized
Pending ApprovalAwaiting manager approval
ApprovedReady to be paid
PartialPartially paid
PaidFully paid
VoidCancelled
OverduePast due date

Attaching Receipts​

Attach receipt images or PDFs to any bill:

  1. Open the bill
  2. Click Attach File in the attachments section
  3. Upload the image or PDF
  4. The file is stored in Azure Blob Storage and linked to the bill

Billable vs. Non-Billable Expenses​

Mark expense line items as billable to pass them through to client invoices:

  1. On a bill line item, check Billable
  2. Select the customer to bill
  3. Optionally set a markup percentage
  4. When creating a client invoice, billable expenses appear as available line items
💡Common billable expenses for MSPs include hardware purchased for a client, software licenses bought on their behalf, and travel to their site.

Vendor Management​

Track your vendors under Accounts Payable > Vendors:

  • Vendor name, address, and contact info
  • Default expense account (pre-populates on new bills)
  • Payment terms (Net 15, Net 30, etc.)
  • 1099 vendor flag — tracks vendors who need a 1099-NEC or 1099-MISC at year-end
  • Year-to-date payment totals for 1099 tracking

Purchase Orders​

For larger purchases, create a purchase order before the bill arrives:

  1. Navigate to Accounts Payable > Purchase Orders
  2. Create a PO with line items, quantities, and expected costs
  3. Send the PO to the vendor
  4. When the bill arrives, convert the PO to a bill

PO statuses: Draft, Submitted, Approved, Ordered, Partial Received, Received, Closed, Cancelled.

Bill Payments​

Pay vendor bills under Accounts Payable > Payments:

  1. Select the bills to pay
  2. Choose the payment method (check, ACH, wire, credit card, cash)
  3. For checks, enter the check number (Books tracks check sequences)
  4. Click Pay

Books posts: DR Accounts Payable, CR Bank Account.

Check Printing​

For vendors paid by check:

  1. Navigate to Accounts Payable > Check Print Queue
  2. Select unpaid bills to include
  3. Print checks with vendor details and amounts pre-filled

Expense Reports​

View expense analysis under Reports:

  • AP Aging — Bills outstanding by age (0-30, 31-60, 61-90, 90+ days)
  • Vendor Summary — Total spent by vendor
  • Expense by Category — Spending breakdown by expense category
  • 1099 Report — Year-end summary of payments to 1099 vendors

Next Steps​