I am setting up CIS and noted that Income and Expense accounts are created specifically for it. Does that Mean I can not now use income accounts to track different sales that I make (below)?
I already have 'Services' (that I sell) setup so that they post to different Chart of accounts Income accounts i.e. a Service named 'Mechanical' that posts to a 'Mechanical Contracting' Income account then a service named 'Electrical' that posts to a 'Electrical Contracting' Income account because I want to see the sales for each separately in my Profit and Loss report.
And similarly with different discipline sub contractors in COG's accounts.
Can I no longer use this if I use CIS? i.e. Do all CIS Sales and COG's go to these new CIS accounts?
Any help would be appreciated or pointing in the right directions for resources to learn. The QBO CIS learning resources are short in detail.
Thanks for your post! The default CIS accounts are designed to automatically calculate and track the CIS deduction amounts, to take the manual load off you. When you use a CIS account on an invoice to a contractor, this will calculate and post the Less CIS amount to the 'CIS suffered' account; when you use a CIS account on a bill to a subcontractor, this will calculate and post the Less CIS amount to the 'CIS withheld' amount.
Once you mark a bill as paid, this will then post to the CIS return which you can submit directly to HMRC. While you can opt to continue using the specific accounts you've set up if you prefer, the only way to have transactions post to the return would be to use the QB accounts.
CIS management in QuickBooks will help you track all deductions appropriately. Using the default accounts for CIS, it will be easier to track them on the returns and reports.
Being able to customise the settings would be a great idea if you have a different way of reporting or tracking. However, in the meantime, the best way to keep track of your CIS amounts is through the default method in the program.
Don't worry, we have more resources to help you understand more about how the CIS feature works in QuickBooks. Here are some helpful articles that you can check: