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beverlybolden87
Level 1

If I'm a small business owner and I get paid a lump sum, then pay my contractors out of my pay, how do I show what I made out of it?

 
2 Comments 2
MirriamM
Moderator

If I'm a small business owner and I get paid a lump sum, then pay my contractors out of my pay, how do I show what I made out of it?

Thanks for the details, beverlybolden87.

 

In general, it is not advisable to mix personal and business funds. Since in QuickBooks Online (QBO), your check and credit card accounts should be business-only accounts.


But if you run into a situation where business and personal finances mix, I recommend the following article as it covers the process of recording and reimbursing business items purchased with personal funds: Pay for business expenses with personal funds.

 

Check out the video below for the detailed step by steps process:

 

Moreover, I'd recommend checking with your accountant for information on how your business should classify these transactions. This is to ensure an accurate record of your accounts.

 

If there's anything else I can help you with in managing your QuickBooks Online account, please let me know by commenting below. I'm more than happy to further assist you.

Rustler
Level 15

If I'm a small business owner and I get paid a lump sum, then pay my contractors out of my pay, how do I show what I made out of it?

@beverlybolden87 

ROFLMAO
The response by @MirriamM  is so far removed from your question I almost spit coffee all over the keyboard.

 

You set up service type items, or if you have the plus flavor of QBO inventory type items too. Those items link to income accounts and you use them on a sales receipt or invoice to show what you do for a customer. Then they pay you and you receive that payment against an invoice if you used it, and deposit the funds to your QB bank account when you actually make a deposit in real life

 

What you pay to get the job done are expenses, if you are paying contractors then you need the plus version since it will allow you to track those payments for end of year 1099 purposes. You need a W-9 from each contractor so you can prepare 1099's in Jan for the proceeding year.

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