
Add contractors or subcontractors in QuickBooks Online
by Intuit•36• Updated 1 week ago
Let's break down the difference between a contractor and a subcontractor. This is key because it helps you keep track of everyone's roles in your projects, as well as keep your financial reporting accurate.
This article will cover.
- Contractor vs. subcontractor
- Add a contractor
- Add a subcontractor
- Edit contractor or subcontractor details
Contractor vs. subcontractor
A contractor typically works directly with a client, taking the responsibility of completing a project. They're the main point of contact and oversee the entire process, making sure that the client's requirements are met.
On the other hand, a subcontractor is usually hired by a contractor to help complete a project. They work under the direction and supervision of a contractor, and reports directly to the contractor who ultimately remains accountable for the project.
Before you start
Before you go ahead and add a contractor or subcontractor, make sure switch on CIS (Construction Industry Scheme) first. Check out the CIS guide for more help.
Add a contractor
- Go to Sales and select Customers (Take me there).
- Select New customer.
- Enter the customer's details.
- In the Additional info section, check the Is CIS contractor box.
- Enter their VAT Registration Number and UTR number (Unique Taxpayer Reference).
- Select Save. Your contractor will now show in the customer list.
Now that all your contractors are in QuickBooks, let's move on to creating CIS transactions.
Add a subcontractor
- Go to Expenses and select Suppliers (Take me there).
- Select New supplier.
- Enter the supplier's details in the Supplier window.
- Select the This customer is a CIS subcontractor checkbox in the Additional info section.
- Enter their UTR number (Unique Taxpayer Reference).
- Enter their National Insurance number (NI).
- Enter their Verification number or Click on Verify subcontractor and follow the screen prompts.
- Select Save. The subcontractor will now appear in the supplier list.
Tip: By selecting Verify subcontractor, you'll be able to verify your subcontractor details directly within QuickBooks. |
Now that all your subcontractors are in QuickBooks, let's move on to creating CIS transactions.
Edit contractor or subcontractor details
Edit contractor details
- Go to Sales and select Customers (Take me there).
- Select the contractor's name to open their details. You can also enter a New transaction from here.
- Select Edit.
- Make the necessary changes.
- Select Save.
Edit subcontractor details
- Go to Expenses and select Suppliers (Take me there).
- Select the subcontractor's name to open their details. You can also enter a New transaction from here.
- Select Edit.
- Make the necessary changes.
- Select Save.
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