Skip to main content

Get 50% OFF QuickBooks for 3 months*

Buy now
Switch to QuickBooks and 70% off for 3 Months
July 30, 2025
Question

How do I catagorise transportation fees for a business that does not transport goods sold?

  • July 30, 2025
  • 1 reply
  • 6 views

The business I work for sets up sound and lighting for events, renting out equipment for the jobs. They bill expenses accumalated during the events to the customer, including transportation costs. 

How do I set up trasnportation as a product/services item to charge the cleint and what accounts will it effect considering we aren't transporting goods sold?

1 reply

QuickBooks Team
July 30, 2025

You can categorize your transportation fees as a Service, even if you're not transporting goods sold, RJeanetteA. And since your business charges transportation costs to clients, these fees can be allocated to an Income account.

 

Here's a step-by-step guide:

 

  1. Go to the Sales menu.
  2. Select Product and Service.
  3. On the upper right corner, click the New dropdown button, then select Service.
  4. Name the item something clear and specific (Ex, Transportation Fees).
  5. (Optional) In the Category section, you can assign it to a category (Ex, Event Costs) if you're using categories to organize your items.
  6. In the Income account section, select an income account for transportation fees.
  7. Click Save and Close.

 

When choosing an Income account for transportation fees, I recommend consulting your accountant. They can provide specific guidance to align your bookkeeping with your financial goals.

 

When it's time to bill the client, you can add this new product/service item to the invoice. The amount will be applied to your selected Income account, increasing its balance.

 

For further assistance with recording invoice payments once your client pays, you can check this article: Record invoice payments in QuickBooks Online.

 

Know that you're always welcome to leave a post here if you have any other concerns. Wishing you and your business continued success.