Disbursement
A disbursement is a cost paid on a client's behalf and passed through to them.
Disbursements are out-of-pocket expenses a professional pays while doing client work — court fees, travel, courier charges, filing fees — and then recovers from the client. They are typically billed at cost with no markup, shown separately from professional fees, and supported by receipts.
Example
A law firm invoices $350 in court filing fees as disbursements on top of its legal fees.
Related terms
Frequently asked questions
Can I add a markup to disbursements?
Usually not — disbursements are expected to be pure pass-through at cost. If you charge a handling fee, disclose it and get agreement upfront rather than burying it.
Disbursement vs expense — is there a difference?
A disbursement is specifically a client-related cost you recover from that client. A general business expense (office rent, software) is your own cost of doing business and is not passed through.
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