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Buy nowI have a small tour company. I have routinely reserve and pay for hotel rooms, event fees, concert tickets etc. I then put together a package and charge my customers with a small markup.
When I pay for the hotel rooms etc, which category should I assign to them? They would not be travel because the IRS would assume that would be my travel, and it is not. Would it be Materials and Supplies?
Thanks.
Thanks for the detailed input with your concern, @TahoeJohnny. I want to ensure you can categorize your transactions accordingly in QuickBooks Self-Employed (QBSE).
Here is a list of transactions that can be classified as Materials and Supplies:
Please refer to this article on Schedule C and expense categories in QBSE for a list of category corresponding to your small tour company transactions.
In addition, I recommend consulting your accountant to ensure that the categories you have selected are accurate. They can share with you their finest practices.
If you require extra references for future transactions, you can refer to the following links below:
The Community is always available if you have any inquiries. I'll be available to assist. I wish you a fantastic day, @TahoeJohnny.
If I remember from my accounting days, like four decades ago, haha, materials and supplies are basically like raw materials or things you use to create your final product. Technically on the creating the product, but I am creating a tour package.
My CPA is out for a week and I was hoping to get this stuff done before then.
I will review the articles you sent and really appreciate your help!
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