Uncertainty about how to properly account for disbursement costs collected from customers and paid to third parties in Canada, specifically whether they should be recorded as revenue and COGS or as liability clearing accounts.

Workarounds Described

• using a liability account for government disbursements
• using a COGS account as a clearing GL for third-party costs

Implied Software Gaps

• Dedicated pass-through expense management module that automatically distinguishes disbursements from revenue

ClearDisburse

ClearDisburse is an accounting add-on that automates the tracking and categorization of disbursement costs collected from customers and paid to third parties. It provides clear, role-based dashboards to separate pass-through expenses from actual revenue and COGS, ensuring accurate financial reporting and simplifying audit trails.

Existing Solutions Mentioned