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Posted by Dan on January 20, 2008, 11:58 am
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Hi,
I am a single-person company with no direct employess, but I do hire lots of
1099 contractors. My question is how to track MY labor hours.
For example, on a plumbing job, I generate an invoice with a "Plumbing"
service item that I use, which is mapped to Construction Income and
Subcontractors Expense. BUT, I use that item for both myself, or a 1099
contractor I hire. It seems to work out OK when I do P&L reports (because
the 1099 person shows up as expense and income, so the remaining amount is
my income), but I wonder if there's a better, cleaner way to do it? For
example, if I just look at Construction Income, there's no way (given my
current implementation) to tell what's my income vs. what's income generated
by a 1099 contractor.
Also, I've just started my business, and I haven't been charging overhead
for 1099 contractors (I've just been passing the cost on to my client
directly), but I want to start incporporating overhead, and I'm not sure how
that would look.
Thanks!
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Posted by dpb on January 20, 2008, 12:23 pm
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Dan wrote:
> Hi,
>
> I am a single-person company with no direct employess, but I do hire lots of
> 1099 contractors. My question is how to track MY labor hours.
>
> For example, on a plumbing job, I generate an invoice with a "Plumbing"
> service item that I use, which is mapped to Construction Income and
> Subcontractors Expense. BUT, I use that item for both myself, or a 1099
> contractor I hire. It seems to work out OK when I do P&L reports (because
> the 1099 person shows up as expense and income, so the remaining amount is
> my income), but I wonder if there's a better, cleaner way to do it? For
> example, if I just look at Construction Income, there's no way (given my
> current implementation) to tell what's my income vs. what's income generated
> by a 1099 contractor.
Subaccounts to track by individuals (a class could work if you don't
care about individual contractors) but you would do better to keep them
separate as well in order to have the proper data to generate their
individual 1099s come year-end.
> Also, I've just started my business, and I haven't been charging overhead
> for 1099 contractors (I've just been passing the cost on to my client
> directly), but I want to start incporporating overhead, and I'm not sure how
> that would look.
Add it as a COGS for the items
--
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Posted by S.M. Serba on January 21, 2008, 10:02 am
Please log in for more thread options > Hi,
>
> I am a single-person company with no direct employess, but I do hire lots =
of
> 1099 contractors. My question is how to track MY labor hours.
Not unless you pay yourelf a salary and you allocate costs.
>
> For example, on a plumbing job, I generate an invoice with a "Plumbing"
> service item that I use, which is mapped to Construction Income and
> Subcontractors Expense. BUT, I use that item for both myself, or a 1099
> contractor I hire. It seems to work out OK when I do P&L reports (because
> the 1099 person shows up as expense and income, so the remaining amount is=
> my income), but I wonder if there's a better, cleaner way to do it? For
> example, if I just look at Construction Income, there's no way (given my
> current implementation) to tell what's my income vs. what's income generat=
ed
> by a 1099 contractor.
>
> Also, I've just started my business, and I haven't been charging overhead
> for 1099 contractors (I've just been passing the cost on to my client
> directly), but I want to start incporporating overhead, and I'm not sure h=
ow
> that would look.
You expense the contractors per usual, either to your expense or COGS
account. When you invoice the job, mark it up.
>
> Thanks!
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Posted by dpb on January 21, 2008, 10:19 am
Please log in for more thread options S.M. Serba wrote:
>> Hi,
>>
>> I am a single-person company with no direct employess, but I do hire lots of
>> 1099 contractors. My question is how to track MY labor hours.
>
> Not unless you pay yourelf a salary and you allocate costs.
...
He could just bill himself at whatever hourly rate he chooses w/ no
formal salary as a sole proprietor. It's simply a service item of
hours, not pieces-parts (that income is subject to self-employment
taxes, though, of course). As the business grows he certainly may want
to get more formal about it, of course. Local accountant would be good
place for some advice, too...
--
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Posted by QBConsultant on January 21, 2008, 6:50 pm
Please log in for more thread options You can enter separate items for you vs. contractors (ie plumbing--
owner and plumbing--contractors) and then you could see the 'sales by
item' to show how much of the income was generated from your time.
If you want to allocate a cost for your time to the jobs, you can
enter a zero dollar check--debit the 'job cost expense' for that
customer/job and offset it with another account so that there is no
real impact on your bottom line P&L.
Make a back up copy of your data file and restore it to the file name
'practice' and try out these ideas.
Michelle L. Long, CPA
www.mlongconsulting.com
Author of: Successful QuickBooks Consulting
www.SuccessfulQuickBooksConsulting.com
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