cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Not applicable

New to Quickbooks. When to use the different expense account types? Need help setting up and filing 1099s.

I just purchased Quickbooks to get everything in order for 2017 taxes. I am working on inputing expenses and am unsure of the difference in the types (Job supplies, Other Business Expenses, Misc. Expenses, Uncategoried, etc.). And for gasoline expense, is that considered "Travel" or "Car & Truck"? Is there a list that explains what each one consists of? Also for 1099 contractors, what do we need to do to or get so we can send out their 1099? Sorry for all the questions, this is all completely new to us.

 

 

(Title has been edited by moderator for clarity)
Solved
Best answer 01-06-2018

Accepted Solutions
Super Contributor **

Re: New to Quickbooks

First, I'm a CPA.

Send vendors a IRS form W-9 to request their address and EIN.  You don't necessarily need this form, but you need the information on the form to send a correct 1099-MISC.

The categories only need to make sense to you.  Not everyone does it the same.

 

Generally I put gasoline and repairs into auto expense, and use travel expense for airfare, hotel, taxi, etc. 

Office supplies are things like pens, paper, ink, toner, tape, etc.   Job supplies would be things that relate to the production of income.  For example, if you are in the flooring business, job supplies would be knife blades, adhesive, wood glue, etc.  Things that are related to the work you do. 

You can get a good idea of good categories to use by looking at the Sch C categories.  If in doubt, more detail is better than less.  You can always combine categories for the tax return.  Remember, the categories need to make sense to YOU, not anyone else.

Hope that helps.

 

View solution in original post

10 Comments
Super Contributor **

Re: New to Quickbooks

First, I'm a CPA.

Send vendors a IRS form W-9 to request their address and EIN.  You don't necessarily need this form, but you need the information on the form to send a correct 1099-MISC.

The categories only need to make sense to you.  Not everyone does it the same.

 

Generally I put gasoline and repairs into auto expense, and use travel expense for airfare, hotel, taxi, etc. 

Office supplies are things like pens, paper, ink, toner, tape, etc.   Job supplies would be things that relate to the production of income.  For example, if you are in the flooring business, job supplies would be knife blades, adhesive, wood glue, etc.  Things that are related to the work you do. 

You can get a good idea of good categories to use by looking at the Sch C categories.  If in doubt, more detail is better than less.  You can always combine categories for the tax return.  Remember, the categories need to make sense to YOU, not anyone else.

Hope that helps.

 

View solution in original post

Not applicable

Re: New to Quickbooks

Yes that is a big help thank you! None of our sub-contractors have an EIN so do we just use their SSN?

Super Contributor **

Re: New to Quickbooks

yes, you can use their SSN.

if you don't have an EIN, you should get one.  this way you don't have to give them your SSN (on the 1099).

Not applicable

Re: New to Quickbooks

Yes that is on our to-do-list! When inputing our sub-contractors pay does that go as an expense under "Contractors?" Or is it supposed to go somewhere different?

Anonymous
Not applicable

Re: New to Quickbooks

@mcwagner,

 

Any tips on when to give workers the W-9? Before they start working for you, their first day working on the project (thanks @mcwagner)? Once they've passed the $600 threshold for a 1099-Misc?

 

In terms of storing files securely, paper or digital copies?

Super Contributor **

Re: New to Quickbooks

Get the W-9 when you set them up as a vendor. that way you're not rushing to try and get the info on January 30. If they don't trip the limit, then no harm, no foul. "First day on the job" implies employee, not contractor. Remember: contractors are "independent." I perform services for multiple customers. I have an investment in my equipment, continuing education, licensing, reference materials, etc; I have risk of losing money. I set my own schedule, I don't have to perform the work personally (I can subcontract it out) because I am only responsible for the end product. I am "independent" of my customer. An employee must perform the work personally. They use the employers equipment and materials, must work according to the employers schedule and have no risk of loss. They are not "independent" of the company. They are employees. Having a contract doesn't matter. Agreeing to be an "independent contractor" doesn't matter. It is a question of independence and control. I like paper. Too many ways electronics can let you down. Don't get me started on the cloud. You have to break in or burn my house down to wreck my paper.
Super Contributor **

Re: New to Quickbooks

@ Bellville It depends. If they are a subcontractor service, it may be COGS. Example: I have a roofing business but I subcontract out chimney caps. If they are subcontract office help, it may be expensed under "Temp labor" or similar. You want your account coding to make sense. The purpose of financial statements is to help you run your business. It needs to make sense to YOU. Dumping everything in "contract labor" might not help you make sense of where your money is going.
Super Contributor **

Re: New to Quickbooks

why is my formatting not "sticking?"
Anonymous
Not applicable

Re: New to Quickbooks

@mcwagner, thanks for catching that. I used the phrase casually but you are right, it is important to be exact. Good insight. 

Super Explorer ***

Re: New to Quickbooks

If you have no employees you can also get a TIN number (Tax Payor Indentification #) so you do not have to give your SS number to all.

Need to get in touch?

Contact us