how to record expenses in quickbooks contractor edition

Or, if the contractor sent you an invoice, you can use Enter Bills and Pay Bills to record the bill and your payment. If you paid the contractor by check, user Write Check in QuickBooks to record the payment.When you pay a subcontractor who does work for you, enter the payment to the contractor in QuickBooks using the item you set up for the subcontracted work. Now that your items are set up, you are ready to pay subcontractors when they do work for you. To set a different sales price for the item, edit the calculated amount. If you have set a standard markup percentage (choose QuickBooks > Preferences and then click Sales & Invoicing, and then enter a number for Default Markup Percentage), QuickBooks uses it to calculate the sales price when you enter the cost.If your costs vary, you can leave either or both prices as 0.00.Enter an expense account for tracking the cost of this subcontracted work and an income account for tracking sales to a customer.You can enter a different description for each or keep them the same. QuickBooks uses the Purchase description for purchasing transactions and the Sales Description for sales transactions.

Enter descriptions for purchasing and sales.Select the “This service is performed by a subcontractor” checkbox.In the New Item window, choose Service from the Type list.Create a new item by choosing Lists > Items and click the + at the bottom of the list.

Then you can create reports that show the profitability of subcontracted work to your business. When you use these items, QuickBooks records expenses and income for subcontracted work in separate accounts. Setting up items specifically for subcontracted work helps you manage your books more effectively. Once you’ve set up the items, you can pay your subcontractors and pass on subcontracted expenses to your customers.

First you set up service items for the work your subcontractors perform and indicate that each item represents subcontracted work. If you hire subcontractors for a customer job, you can track the income and expenses for work performed by subcontractors in QuickBooks. Sometimes we all need a hand on a project.

How to record expenses in quickbooks contractor edition