Hello RJ56, We just need a bit more information when you say they pay you is that a percentage of income from sales, and then if it does not reach a certain amount they deduct money? Are the deductions allowable for your business and we can help with the category, you can also refer to this guide
I’ve just joined QB Online and have been logging all my paper receipts going back to April 2020 into my account using ‘create receipt’ I think it was. Have also connects to my bank account so all transactions are shown.
I’ll be watching all the tutorials, but for now one question.
I’m a franchisee who pays a set amount to the franchisor every month, which is a combined license/national advertising fee.
Do I need to categorise this expense, and assuming I do what is the categorisation?
QBO suggests ‘rent’ though I’m a mobile service and self employed sole trader.
I can provide a few info about our expense categories in QuickBooks Seld-Employed.
QuickBooks Self-Employed matches the categories you assign in each transaction to a line on your tax forms. Also, if these fees have different categories, you'll split a single transaction between business and personal, or into multiple categories. You can browse the About SA103F Categories article for more information.
This is to ensure that your estimated taxes are accurate. Here are some references regarding the calculations and reports: