I often prepay expenses for my clients. We can use postage and courier fees
as an example. The fees are prepaid using the company's credit card. I need
to track the proper fees for each client and also charge each client on their
monthly invoice.

I am looking for suggestions on how best to account for these expenses and
track for invoicing purposes.

I credit the CC liability at the time of the charge. Should I debit a
prepaid asset account? Since this is not my expense and certainly not
income. I thought I could setup a prepaid asset account with sub accounts
for each client. I would then debit the clients prepaid asset sub-account
(such as prepaid reimbursable postage ) and credit the CC liability. When I
receive the cash I would increase the checking account and offset the prepaid
asset sub-account to 0. Since i have the cash, I would reduce the checking
account when the money was transferred to the CC company.

When I invoice I would check the prepaid account for the correct amount.
One concern is if this would become difficulty for tracking when I have
mulitple periods in the asset account while waiting for the prior periods
cash.

Thoughts? Better ideas?