Am I right not to use CIS in QuickBooks?

OIO · ‎August 04, 2020

Hi All,

Could you please advise?

I have hundred of subbies each month and I don't use CIS in QBO. The reason behind it is I need to categorise these expenses by sub-accounts. The sub-accounts are simply various cost types (about 20) and they are crucial to analyse how the business is doing. I need to know how much I spent on pricework, daywork, installation, snagging, agency workers, cleaners, etc. Now, to fully convert to CIS in QBO I would need to use only one single cost account "CIS cost standard (20%)" because I can't duplicate it across my current other sub-accounts. So, to make us of the CIS feature, I would need to sacrifice my analytics in Chart of Accounts. I have a choice: to use CIS and account all costs on one single "CIS cost standard (20%)" account or not to use CIS (using my workaround) and to record costs to different cost types on my sub-accounts for the benefit of costs analysis.

What am I missing here, please? Is my approach wrong? What silly mistake have I made?

FYI: Class is already used for cost centres: office, site, warehouse, etc. Location is unused and reserved for potential expansion to the other regions/cities.

Thank you.

Certified gold trainer · ‎October 05, 2020

Given the information you say, I would say you are probably right not to use Quickbooks at this time. However if you could for example use your Location given that it is not being used at the moment that may solve your issue.

So you switch on and use CIS in QB - which as you say will allocate to one Nominal Ledger account and then you separately cateqorise all those entries through the location tab to the various breakdown of that nominal account ,i.e brickwork, foundations, etc..

You could then set up a customised report for that nominal account by location to give you the further breakdown that your business requires.

Obviously this uses the location which you were reserving for future expansion etc but this could be a fix at the moment given this reservation.

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Am I right not to use CIS in QuickBooks?

Am I right not to use CIS in QuickBooks?

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