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July 24, 2021
Question

Taxable Income

  • July 24, 2021
  • 1 reply
  • 0 views

Hello,

 

I am a videographer. I shoot short films, music videos, photography etc. My client submits payment to me for my service. Additionally, client's will pay me money for their production needs; such as their venue, cast, stylist, makeup, models, etc and I use that money to book those items. For these production expenses the client pays how do I record this in QBO? Is it considered income? When I purchase the production necessity, do I categorize it as an expense in QBO? Please advise. Example below.

 

Project: Bob's Music Video

Service: $5,000 paid by Bob 

Production: Bob requests to have 3 models and 2 venues for his music video and will pay whatever the cost is. After I have scouted and found the production needs necessary the total is $1,585. Bob submits this payment. 

How do I categorize it on QBO when the transactions appears in banking?

 

Thanks in advance!

1 reply

Rustler
July 24, 2021

What you invoice your client for is income, what you pay is an expense
On the P&L income is reduced by expense

WVVPAuthor
July 25, 2021

Thank you for clarifying!