How do I categorize Venmo payments in Quickbooks if they are used to pay a vendor or subcontractor? Everytime I change one payment it changes them all?

davidkhuffman · ‎June 30, 2023

This works as long as you don't receive Venmo and end up with a balance.

In that case, payments come out of your balance and there's not a one-to-one correspondence between venmo payments and transfers from your bank account.

So, I categorize the payments from my Venmo account and call the occasional replenishments from my bank account a transfer.

coastalinc · ‎July 17, 2023

For all third party payment apps how would I input into QBO a payment made to a person that I subcontracted to to perform labor services? Would I

—input just cash app or as it appears on bank statement (which would be ex: cash app name)?

—what category would that be since it’s for labor? I know not payroll since there’s no wages and or taxes.

—Am I correct on assuming not to do a 1099 since the third party apps will report it?

KlentB · ‎July 17, 2023

I can shed some light on that topic, coastalinc.

When recording a payment made through a third-party payment, it's generally a good practice to input the payment method as it appears on your bank statement. Using the specific account name helps distinguish between different sources and maintain consistency in your financial records, making it easier to track your transactions.

Regarding your second question, labor services provided by a subcontractor are not for wages or taxes. To be guided with the categorization, I recommend consulting an accountant professional. They can help you choose the best category that represents the type of service they rendered.

Moreover, payments made to vendors through credit cards, debit cards, or third-party systems like Cash App are not included in the 1099-MISC/NEC calculations. Your financial institution will be the one to report them for you.

Finally, we have carefully selected a collection of articles to aid users efficiently manage their vendors and expenses. Our Digital Resource Center covers various topics, such as entering bills, writing checks, managing inventories, and cash flow management.

I'm still here if you need a hand in accomplishing your other QuickBooks Online tasks. Assistance is just a comment away. Take and have a good one!

1stopacctg · ‎July 17, 2023

I usually put "Ask my client" for Venmo.

There is no information available. We can't guess.

Client will need to know that every Venmo entry/payment will have to be completed later with the data of who they paid and what they paid for.

They can pay subs right inside of QBO if they have payroll now.

No need for venmo - and it will track to for 1099

tdsoul · ‎September 09, 2023

Helping new client reconcile 2022! They have Venmo as a bank account. Recorded transfers to checking account as transfers, but also used credit card in Venmo and those transactions are coming in and posted as expenditures... not a transfer to the CC. The CC itself is NOT connected in QBO. Deadline to file taxes is a week away, so I'm looking for the quickest, least painful fix. Should I record those CC transactions in QBO as a transfer to a liability account? Should I figure out the Venmo balance WITH the CC transactions as if they're hitting the bank and reconcile to a negative balance? HELP

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