How to categorize fiverr.com and freelancer.com services?

Hi there, info1160.

If the transactions are already transferred to your bank that is connected to QuickBooks Self-Employed, you can categorize them from there. I'll show you how to categorize a transaction in QBSE.

Here's how:

1. Click on the Transaction menu.
2. Locate those transactions on the list.
3. Select Business if the transaction was for business, or select Personal for personal. If the transaction was both, select Split.
4. Review the category in the Category column. QuickBooks tries to categorize transactions for you.
5. If you need to change the category, select the category link. Select a general type, and choose a more detailed category.
6. Select Save.

You can learn more details about categorizing transactions in QBSE in this article.

I'm adding some links on how to customize categories and updates to expense categories for your reference:

• Custom categories in QuickBooks Self-Employed
• Updates to expense categories in QuickBooks Self-Employed

If you have any additional questions or concerns, please don't hesitate to add a comment below.

Please take a look at this link:

https://forum.fiverr.com/t/tax-forms-and-fiverr/263835

How do I create a a category for "third party settlement". As per fiverr we are not required to send 1099s to the individual freelancers. For schedule C, they suggest using "third party settlement" for the expenses.

I appreciate you coming back to us, info1160.

The categories available in QuickBooks Self-Employed (QBSE) are aligned with the categories found in the 1040 Schedule C form. You can refer to this article about Schedule C and expense categories in QBSE for the list of categories that best fits to third party settlement.

To make sure the categories you used are accurate, I suggest reaching out to your accountant to seek professional advice. Or, you can post your questions here. There are available experts who can share their best practices with you.

I can see the importance of being able to customize a category in QBSE. In line with this, our product developers are working on expanding the ability to manage categories by creating an option to customize your own categories.

While this is not yet available, you can regularly visit this article where we provide updates regarding the progress of this project: Custom categories in QuickBooks Self-Employed.

If there's anything I can help you with, feel free to drop me a reply below. Hope you have a good one.

I believe he means which general ledger expense account should be used when paying a vendor like Fiver or Upwork or freelancer.com. These are third party services where you get projects done and they pay the contractor directly and issue 1099s to them. I think this more more be a general expense based on what you are getting done. For example if you are hiring a freelancer to do work vs creating a tool that will be used internally for your company, vs perhaps having someone write copy for your blog or website. It's important to emphasize that the third party is issuing the 1099 from their company to the contractor so it's not employment or a contractor payment.

Does anyone know the account to post to?

Hi there, mac2it.

To avoid messing up your account, I'd suggest reaching out to your accountant. This way, they can guide you on choosing the correct account. if you don't have one, you can look for an accountant near you through this page: Find a ProAdvisor.

You can always pin this article as your guide in categorizing the transactions: Schedule C and expense categories in QBSE.

We'll be right here whenever you have concerns.