If a client asks you to fly out for a meeting or a shoot, who pays for the coffee at the airport? If you don't have a clear expense policy in place, you’ll end up eating those costs yourself.
Here is how to bill for expenses without looking like you're overcharging.
1. Get Approval First
Never put an unapproved expense on a final invoice. Your contract should state: "All travel expenses over $50 must be approved by the Client in writing prior to purchase."
2. Markup vs. At-Cost
- At-Cost: You bill exactly what you paid. (Common for travel).
- Markup: You add 10-15% for the "Administrative effort" of booking. (Common for materials/assets). Whichever you choose, ensure your invoice line items reflect the agreement.
3. The "Receipt Attachment" Rule
When you send your final invoice, you MUST attach digital copies of all receipts. Accountants will not reimburse you based on your word alone. Pro Tip: Scan your receipts and combine them into a single PDF to send alongside your bill.
4. Per Diem vs. Actuals
Some clients prefer a "Per Diem" (a flat daily rate for food and incidentals). This is much easier to manage because you don't have to track every sandwich. You just add one line item: "Per Diem - 3 Days @ $75/day."
Frequently Asked Questions (FAQ)
Are reimbursed expenses taxable income?
In the US and many other countries, if you are reimbursed for a business expense, it is technically income, but you also get to write off the expense, so the tax impact is zero. Keep your local-first records clean for your CPA.
What if I use my own car?
You should bill for "Mileage" based on your country's standard government rate (e.g., the IRS mileage rate). Keep a log of your starting and ending odometer readings for the trip.
Should I bill for travel time?
Yes. Travel time is "Opportunity Cost"—time you can't spend working for other clients. Most freelancers bill travel time at 50% of their standard hourly rate. Ensure this is spotted and clarified in your contract scan before you leave home.