I have been using Quickbooks for 20 years on a cash basis, which has worked fine until now. I recently began acting and signed with a talent agent. The talent agent receives my fee paid by the client's payroll company. I am considered a W2 employee by the client, and they have taken out my federal and state taxes from the gross amount earned. The agent receives the check, takes his commission, and sends me a check for the balance, listing all taxes based on the gross and commissions as deductions.
I enter the net amount of my earnings to my checking account as income but will report the full amount for income tax purposes to my accountant based on the W2 that I receive at the end of the year. But, I have no way of showing the expense of commission through my system, because I didn't actually send them a check for the commission. I need to figure out how to set up an account that logs these commissions and shows them as an expense on my P&L.
