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Posted by Joanne on August 31, 2006, 4:38 pm
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>A customer asked me to coordinate multiple vendors for some work on his
> house. He wrote one check to me. I then wrote checks to the various
> vendors. I didn't add anything to the vendor cost, it's simply a
> pass-thru
> type of situation. I'm assuming that I don't have to claim that as income
> nor write the vendor checks off as expenses. Correct? How do I record
> that
> type of transaction within QB?
>
> Thanks
Even though there is no profit to you, you have placed yourself in the
position of being responsible for issuing 1099s to those to whom you have
issued checks if they qualify.
You do add the reimbursement check to your income because you may receive a
1099 from the person who paid you if they follow the rules and you qualify.
You do add the checks to some expense account such as "Contracted Services"
and get a W9 from each vendor to save yourself some grief at the end of the
year.
--
Sincerely,
Joanne
If it's right for you, then it's right, . . . . . for you!!!
http://www.jobird.com
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