I have a hired labor contractor that I regularly use. I had been paying him with checks but has now asked if I can pay him by purchasing certain items my business sells with my business account. Is this at all possible, and if so, how? Basically, it would be like a revolving line of credit fro him from my business.
Thanks for dropping by the Community, fullspectrum307.
I can help in paying your vendor using the items you sell in your business.
QuickBooks Online has a way to record a barter transaction which occurs when you and your vendor exchange goods and services. To record the exchange, you would enter an invoice and a bill to record the products or services you are exchanging.
Before you begin to enter the barter transaction, make sure the barter partner's name is in both the vendor list and customer center. Since you can't have exactly the same name in both lists, make one of the names slightly different.
First, let's set up the barter bank account:
Next, create and enter an invoice:
Lastly, enter and pay the bill for barter transaction:
The screenshots below show these steps as well.
For the detailed steps, check out this article: How to record a barter transaction.
That information should get you on the right track. I'd be delighted to answer other questions should you have any. I'm cheering you to continued prosperity.