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Expense Invoice Template: Reimbursement Billing Made Simple

Expense Invoice Template: Reimbursement Billing Made Simple

QuickBillMaker Team
10 min read
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Expense Invoice Template: Reimbursement Billing Made Simple

Master expense invoicing with clear templates for travel, materials, subcontractors, and client reimbursements. Learn markup strategies, receipt requirements, and professional billing practices.

Many freelancers and consultants leave money on the table by inadequately tracking and billing expenses. Research shows that professionals who systematically invoice reimbursable expenses recover 40-60% more costs than those who absorb expenses or forget to bill them.

Expense invoicing is not just about recovering costs—it's about professional project management and fair pricing. When you properly track and bill expenses, you signal to clients that you manage budgets carefully and understand the true cost of delivering quality work.

This guide will show you how to create clear expense invoices that get reimbursed quickly, protect your profit margins, and maintain professional client relationships.

Expense Invoice Calculator

$450.00
$368.00
Expense Subtotal:$818.00
Tax (10%):$81.80
Total Reimbursement:$899.80

Common Reimbursable Expense Categories

Understanding which expenses are typically reimbursable helps you bill accurately and completely:

Travel Expenses

Flights, hotels, mileage, parking, tolls

Receipt Required
Bill at Cost

Materials & Supplies

Project-specific materials purchased on client's behalf

Receipt Required
Markup Allowed

Subcontractor Fees

Third-party services hired for the project

Receipt Required
Markup Allowed

Meals & Entertainment

Client meetings, business meals during travel

Receipt Required
Bill at Cost

Expense Markup: When and How Much

Marking up expenses compensates you for time, risk, and coordination. Here's when markup is appropriate:

Materials & Supplies: 10-20% Markup

When you purchase materials for a project, you invest time researching vendors, comparing prices, placing orders, and managing delivery. A 10-20% markup is standard.

Stock photography license: $200.00
Markup (15%): $30.00
Total billed: $230.00

Subcontractors: 15-25% Markup

Managing subcontractors involves vetting, coordination, quality control, and payment processing risk. 15-25% markup is industry standard.

Copywriting services: $800.00
Project management fee (20%): $160.00
Total billed: $960.00

Travel: No Markup (Bill at Cost)

Flights, hotels, rental cars, and meals are typically billed at actual cost without markup. These are pass-through expenses.

Round-trip airfare: $485.00
Hotel (2 nights): $340.00
Total billed: $825.00 (no markup)

Disclosure Best Practice

Always disclose your markup policy in your service agreement. Transparency builds trust. Consider labeling markup as "Project Management Fee" or "Coordination Fee" to clarify what clients are paying for beyond the base expense.

Professional Expense Invoice Formats

Clear formatting prevents confusion and accelerates reimbursement. Here are two proven formats:

Format 1: Combined Services + Expenses

INVOICE #2025-0142 | Due: Feb 15, 2025
Website Redesign Project - January 2025
Professional Services
Design & Development (40 hours @ $125/hr)$5,000.00
Reimbursable Expenses
Premium WordPress theme license$89.00
Stock photography (10 images)$150.00
Copywriting services (subcontractor)$600.00
Project management fee (15%)$90.00
Subtotal:$5,929.00
Total Amount Due:$5,929.00

Format 2: Expense-Only Invoice

EXPENSE INVOICE #2025-0143 | Due: Feb 15, 2025
Reimbursable Project Expenses - January 2025
DateDescriptionAmount
01/12Printing services - 500 brochures$285.00
01/15Round-trip airfare (Client meeting)$425.00
01/15Hotel (2 nights @ $145/night)$290.00
01/20Mileage (120 mi @ $0.67/mi)$80.40
Total Reimbursable Expenses:$1,080.40
Receipts attached. Payment due within 15 days.

Receipt Documentation Best Practices

Attach receipts to invoices proactively

Include PDF scans of all receipts as email attachments or links. Don't wait for clients to request them—this delays payment.

Label receipts clearly

Name files descriptively: "2025-01-15_Hotel_Receipt_$290.pdf" not "IMG_2847.jpg". This makes verification easy.

Highlight relevant amounts

If a receipt includes personal and business items, highlight the business portion and add a note explaining the amount billed.

Keep digital and physical copies

Store receipts in cloud storage (organized by client and month) and keep physical receipts for at least 7 years for tax purposes.

Use expense tracking apps

Apps like Expensify, Shoeboxed, or QuickBillMaker scan receipts in real-time, categorize expenses, and generate reports automatically.

Frequently Asked Questions

What is an expense invoice and when should I use one?â–¼
An expense invoice bills clients for reimbursable expenses incurred on their behalf during a project. Use expense invoices when you purchase materials, travel for client work, hire subcontractors, or incur any project-specific costs that the client has agreed to reimburse. Expense invoices can be standalone or combined with service fees on a single invoice. Always obtain client approval for significant expenses before incurring them.
Should I mark up reimbursable expenses?â–¼
Markup policies vary by industry and should be clearly stated in your contract. Many consultants add 10-20% markup on materials and subcontractors to cover administrative time for purchasing, coordination, and risk. Travel expenses (flights, hotels, meals) typically are not marked up and are billed at cost. If you mark up expenses, clearly show the base cost and markup separately on your invoice for transparency. Always disclose your markup policy upfront.
Do I need receipts for every expense on my invoice?â–¼
Yes, maintain receipts for all expenses you bill to clients. Most businesses require itemized receipts for amounts over $25-75. Best practice: attach PDF copies of all receipts to your invoice or make them available upon request. For recurring small expenses (parking, tolls under $10), a summary line item with total is often acceptable. For large expenses (flights, hotels, equipment), always attach receipts proactively to prevent payment delays.
How do I format expense invoices professionally?â–¼
Create a separate section on your invoice titled "Reimbursable Expenses" distinct from your service fees. For each expense, list: date incurred, expense category, description, original cost, markup (if applicable), and total. Include subtotals for expenses and services separately before showing the final total. This clarity helps clients understand what they're paying for and facilitates their internal approval processes.
Can I bill mileage on expense invoices?â–¼
Yes, mileage for client-related travel is a standard reimbursable expense. Use the IRS standard mileage rate ($0.67/mile for 2025) unless your contract specifies otherwise. Document: date, destination, purpose, starting/ending odometer readings, and total miles. Present as "Mileage: 150 miles @ $0.67/mile = $100.50" on your invoice. Keep a mileage log with routes and business purposes for tax documentation.
Should expense invoices be separate from service invoices?â–¼
This depends on client preference and accounting systems. Combined invoices (services + expenses on one invoice) are simpler for small amounts and reduce administrative work. Separate invoices work better when expenses and services have different approval processes or are paid from different budgets. For recurring retainers with variable expenses, separate invoices provide clearer monthly cost tracking. Ask clients their preference during contract negotiation.
How do I get pre-approval for large expenses?â–¼
For expenses over $200-500, send a pre-approval email before purchasing: "Hi [Client], To complete [task], I need to [purchase/hire]. Estimated cost: $[amount]. This will be billed as a reimbursable expense on [Month] invoice. Please confirm approval to proceed." Save their approval email and reference it on your invoice: "Materials per approval on [date]." This prevents disputes and demonstrates professional project management.
What expenses are typically NOT reimbursable?â–¼
Non-reimbursable expenses include: general office overhead (rent, utilities, office supplies you use for all clients), equipment you'll use for multiple projects (computer, software you already own), commuting to your regular office, time spent purchasing materials (bill as services instead), and personal expenses. Reimbursable expenses must be project-specific, incurred solely for the client's benefit, and agreed upon in your contract. When in doubt, discuss with the client upfront.

Stop Leaving Money on the Table

Professional expense tracking and invoicing ensures you recover every dollar spent on behalf of clients. QuickBillMaker's expense invoice templates make it easy to document, categorize, and bill reimbursable expenses with automatic calculations and receipt management.

Create your first expense invoice in minutes with built-in markup calculations, receipt attachment, and clear formatting that gets approved quickly.

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