I am a Commercial General contractor. I use subcontractors for all of the work/jobs I do. When setting up an Item for instance "Plumbing" I use Subcontractor Expense as my expense account and Construction Income for my Income account. Is there a need to set up sub accounts of both Subcontractor Expense and Construction Income for each item ie; Plumbing? Will that allow me to track each item better?
"When setting up an Item for instance "Plumbing" I use Subcontractor Expense as my expense account and Construction Income for my Income account."
That is your Service Item. This is "two Sided." This is Perfect :)
"Is there a need to set up sub accounts of both Subcontractor Expense and Construction Income for each item"
No; the point of using Items is to avoid micro-managing the accounting. Think "financial report vs Operations." You only use the level of detail for the Financial reporting as you need for your Tax forms. You use a level of Items and item Types to meet your Activity and Operational reporting, such as Estimates, Job Profit, payments to supplies for goods and services, etc.
Please see my attachments.
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