I work with a Father/Son Home Remodeling business and they work very differently in Quickbooks. And we have three sets of hands in these accounts! The son needs to run his invoicing through the father's Home Services business because of insurance and licensing reasons. When the son gets a new client, he sends them an estimate on the work to be done through Dad's Home Services. As the work is going on, they are sending me receipts and invoices as well as time sheets through expensify. I create a separate invoice with what Dad calls 'a running total' of the exact expenses. When the work is completed, Son then goes into Quickbooks and creates an invoice for the client with the 'projects' that have been completed. For instance: Tile work $1000 (in this total he has figured his costs, labor and profit). Meanwhile, I've got this running total for that client with the expenses listed out: Labor, Services & Material. Which is what shows up on the P&L.
What we want do is delete my invoices with the exact expenses. But then, we wondered if it's going to mess up our P&L if we are deleting out the exact expenses for son's all-inclusive expenses. All payments were counted towards invoices sent by son. I looked in the Chart of Accounts and the son does have the expenses designated as Cost of Goods & Services.
We have maybe 10 clients in Home Services with billing that looks this way. I'm very confused with this and really need someone to help me figure out how to fix this or even if it doesn't make a difference.
Thank you for joining us today. Before we get started, I do want to let you know that our imaging is public, and your information is stating your address, etc on the image provided. You can remove this image if you no longer want it to be public.
You'll need to reach out to an accountant as I can't provide information on this. As you can remove the invoices, it will affect your P&L due to losing much need documentation. This is why we recommend to reach out to your accountant.
If you don' t have an accountant, I do have two options for you to get assistance with this. You can go to Find an Accountant QBO or our QuickBooks Live Bookkeeping. These two will be able to get you on the right track. If you have any more questions or concerns, please don't hesitate to reach back out. Happy Monday!
I removed the images. Thanks for pointing that out! I didn't even think about that. I asked the client's accountant but he charges $350 / hr. I was hoping that someone in the Quickbooks Community would be able to help me wrap my mind around this. Did I post my question in the wrong place?