Expenses ·
Expense and Receipt Tracking: A Simple System
How to track business expenses and receipts with a simple system: capture, categorize, store, reconcile monthly and hand clean records to your accountant.
9 min read
Who it's for / Architects
Architects and small practices bill in a few ways: a fixed fee split across the phases of a project, a percentage of the construction cost, or hourly for additional services and small jobs. Invoices follow the phases or go out monthly by percentage complete, a retainer is often paid at signing, and permit fees, printing and travel are billed back as reimbursables. Tell Clodou what you agreed and it writes each invoice with the phase, the fee and the reimbursables on their own lines, and keeps track of what is still owed.
"Invoice the Okafors for design development: 20% of the $40,000 fee, $8,000" is one line that shows how you got there. Clodou uses the amounts you state, and the project keeps the fee as its budget next to the costs you record.
Create a project with your hourly rate and log time on it as you go. Invoicing the unbilled time turns the billable hours into one draft invoice, one line per entry with its date, and marks them billed so none is invoiced twice.
Log permit fees, printing and travel as expenses on the project, from a sentence or a receipt photo you confirm. Bill them back on their own lines at cost, or with the markup your contract states as an amount you give.
Many practices agree a fixed fee and split it across the phases of the work, such as schematic design, design development, construction documents, permitting and construction administration, then invoice each phase when it is done or monthly by percentage complete. Each invoice has a line per phase with the share you bill, such as construction documents, 40% of $14,000, $5,600. Clodou uses the amounts you state; the fee schedule comes from your agreement.
When the fee is a percentage of the construction cost, work out the phase's fee from the current cost estimate and give Clodou the amount, with the figures in the line so the client can follow them. Additional services, feasibility studies and small jobs are often billed hourly: log time on a project with your hourly rate and turn the unbilled hours into one draft invoice.
A retainer paid at signing is invoiced on its own, with your terms in the note, such as credited against the final invoice; when you invoice the last phase, state the amount after the credit and say so on the line. Reimbursable expenses such as permit and filing fees, printing and travel are billed back at cost or with the markup your agreement states. Whether tax applies to your fees or to reimbursables is for you to check with your accountant; Clodou applies the rate you set, per line if needed.
Step 1
Create a project, Okafor residence, for Ada and Ben Okafor with a $40,000 budget, the fixed fee. Then invoice schematic design, complete: 15% of the fee, $6,000.
Adds Ada and Ben Okafor as a client, creates the Okafor residence project with a $40,000 budget and creates draft invoice INV-0019 with one line: schematic design, 100% complete, 15% of the $40,000 fixed fee, $6,000. No tax is set on this workspace, so the total is $6,000.
Step 2
This month: design development is complete, 20% of the fee, $8,000, and construction documents are 40% complete, 40% of $14,000, $5,600. Add the reimbursables at cost: building permit fee $1,250 and plan printing $186. Log both as expenses on the project too.
Creates draft invoice INV-0020 with four lines: design development, 100% complete, $8,000; construction documents, 40% of $14,000, $5,600; building permit fee, at cost, $1,250; plan printing, at cost, $186. Total: $15,036. Records two expenses on the Okafor residence project, $1,436 in all.
Step 3
The Okafors asked for a garage study, billed hourly at $150. Create a project for it, log 6 hours today and invoice the unbilled time.
Creates the Okafor garage study project at $150 an hour, logs 6 billable hours dated today and creates draft invoice INV-0021 with one line for that entry, 6 h at $150, $900, marking the hours billed.
Step 4
I sent INV-0019 to INV-0021. The Okafors paid INV-0019 in full and $10,000 on INV-0020.
Marks the three invoices as sent and shows two approval cards: $6,000.00 on INV-0019 and $10,000.00 on INV-0020. Once you approve them, INV-0019 is marked paid, and $5,036.00 is still owed on INV-0020 and $900.00 on INV-0021.
Invoice the Okafor residence for schematic design: 15% of the $40,000 fixed fee, $6,000
Log a $1,250 building permit fee on the Okafor residence project
Invoice Harbor Café for this month's unbilled hours on the kitchen layout study
Expenses ·
How to track business expenses and receipts with a simple system: capture, categorize, store, reconcile monthly and hand clean records to your accountant.
9 min read
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