Overhead
Rent, payroll software, general SaaS, and other costs the agency absorbs, with receipts.
Consultant & agency finance · Expense tagging
Split every expense into overhead or client-billable
Every agency cost falls into one of two buckets: agency overhead you absorb (rent, payroll software, general SaaS) or client-billable pass-through you rebill (stock licenses, ad spend, contractor work). When that split isn't recorded at the moment of purchase, your bookkeeper has to guess, and billable costs get absorbed by accident. Cash Workspace gives the agency one tagging workflow that splits each expense into overhead or client-billable and files it with its receipt so the split is clear.
The problem
Why the overhead/billable line blurs
Overhead and billable costs hit the same card and the same inbox. If you don't tag the bucket and the client at purchase, the distinction is lost by month end.
- A stock-photo license bought for a client project gets absorbed as overhead because it wasn't tagged.
- Ad spend run on a client's behalf isn't recorded against the client, so it's not rebilled.
- General SaaS and payroll software get mixed in with client pass-through costs.
- The receipt is filed somewhere, but not with a tag showing which bucket it belongs to.
- Your bookkeeper can't see the overhead-vs-billable split without re-sorting everything.
The workflow
Tag the bucket at purchase
Decide overhead or client-billable the moment you record each expense, so the split is built in, not reconstructed later.
- 1
Record the expense
Note vendor, category, amount, and date as soon as the cost hits, before it's forgotten.
- 2
Tag the bucket
Set each expense overhead or client-billable; never leave the bucket blank.
- 3
Add the client
For client-billable costs, tag the client so it can be rebilled to the right project.
- 4
Attach the receipt
Attach the receipt or vendor invoice to the record so proof stays with the split.
- 5
Review the split monthly
Scan the billable list each month so nothing rebillable is left sitting in overhead.
Record structure
What to record for each expense
A consistent field set makes the overhead/billable split unmistakable.
- Vendor
- Who was paid — the landlord, a SaaS provider, a stock library, an ad platform.
- Category
- A product-defined expense category such as software, rent, advertising, or contractors.
- Amount
- What you paid and currency.
- Date
- When the cost was incurred, so it lands in the right month.
- Bucket
- Overhead or client-billable — the core tag for this workflow.
- Client
- For billable costs, the client and project it should be rebilled to.
- Receipt
- The receipt or vendor invoice attached to the record.
- Note
- Short context such as 'stock license for ACME Q3 campaign'.
Example setup
An example split setup
One way to organize the overhead/billable split inside your workspace.
Client-billable
Stock licenses, ad spend, and contractor costs tagged to the client they rebill to.
Billable by client
A view grouping client-billable costs under each client for clean rebilling.
Receipts
Every receipt attached to its expense record so the bucket and proof stay together.
Common mistakes
Mistakes to avoid
- Leaving the bucket blank, so overhead and billable have to be re-sorted later.
- Tagging a cost billable but forgetting to tag which client it rebills to.
- Absorbing client pass-through (stock, ad spend) as overhead by accident.
- Filing receipts without the bucket tag, so the split isn't visible.
- Skipping the monthly billable review, so rebillable costs sit unbilled.
How it helps
How Cash Workspace helps
One tag, two buckets
Record each expense and tag it overhead or client-billable so the split is built in from the start.
Billable by client
Tag billable costs to the client they rebill to, so each project's pass-through stays grouped.
Receipts with the split
Attach the receipt to each record so your bookkeeper sees the bucket and proof together at a glance.
Related
Related agency expense workflows
Accountant handoff folder
Hand a clean, organized expense set to your accountant.
Pass-through costs
Organize costs you advance and rebill to clients.
Multi-client allocation
Allocate shared costs across the right clients.
Expense categories
See how product-defined categories keep costs organized.
All finance workflows
Browse the full Cash Workspace workflow library.
FAQ
Overhead vs billable FAQ
- When should I decide overhead vs billable?
- At the moment you record the expense. Tagging the bucket right away means the split is built in and your bookkeeper never has to reconstruct it from a card statement.
- How do I keep client-billable costs grouped?
- Tag each billable cost to its client and project, so all pass-through for one client stays together and is ready to rebill, separate from overhead you absorb.
- Does Cash Workspace calculate my margins?
- No. It organizes the records so overhead and billable costs sit clearly apart for review. It does not compute profit or margin; you and your accountant interpret the records.
Organizing help — not tax, accounting, or legal guidance
Cash Workspace is a free workspace for organizing invoices, expenses, receipts, clients, and documents. This page is organizing guidance only — not tax, accounting, legal, or bookkeeping guidance. Cash Workspace does not connect to your bank, does not scan or read your receipts for you, and does not move or collect payments. Whether an expense is deductible depends on your situation, so confirm it with a qualified accountant or tax professional.
Make the overhead/billable split clear
Start a free workspace and tag every expense overhead or client-billable with its receipt attached, so the split is obvious to you and your bookkeeper all month long.