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How to categorize FB ads on behalf of client?

Hi everyone, 

I was hired to shoot a promo video and run a Facebook ad campaign on behalf of a client. They paid half the project cost up front, out of which I paid some of the initial ad costs. 


I'm using QuickBooks Self-Employed. Now that I'm receiving payment receipts from Facebook for the completed ads, how should I categorize them? Again, the client has already paid for much of it up front. Thanks for any help you can provide! 


1 Comment
QuickBooks Team

Re: How to categorize FB ads on behalf of client?

Hello there, @joshisaking.


If the ad payments you’ve made to Facebook are part of your self-employed job in which you’ve earned out of it in return, then you can include and categorize it under Schedule C: Business Expense.


For a more detailed list of categories, you can read through these articles:

However, if your client reimbursed you for the full amount that you’ve paid to Facebook, then you’re not earning out from it. You need not worry, you can still record it in the system and mark it as Personal Expenses or Excluded. Doing so, the reimbursement will not be included in your estimated taxes.


To learn more on how to calculate your estimated taxes, you can check these articles:

Also, I’d recommend consulting with your Accountant or a Tax Professional so you’ll be guided accurately in categorizing your income and expense transactions. Also, you can visit our AnswerXchange Community Team for further assistance on tax-related questions.


You can always swing by here in the Community if you have other questions. I’m always here to help.

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