Skip to main content
C
CJ Trans
December 21, 2023
Question

Reimbursements Needed From Independent Contractors

  • December 21, 2023
  • 1 reply
  • 0 views

I own a commercial trucking company. My drivers are considered Independent Contractors. I pay many items on their behalf and then get reimbursed for those items once I process their weekly pay. Usually I pre-pay for items so I need to categorize those pre-payments and tie them to the Contractor at the time I make the payment. When it is time to pay the weekly earning I then need to deduct from the contractor all items that have been pre-paid by me.

1 reply

G
GebelAlainaM
December 21, 2023
Hello there, CJ.

I'll ensure to provide information on how you can manage prepayments in QuickBooks Online (QBO).

When recording prepayments in QBO, you'll have two options for handling it. These options are Accounts Payable and Asset accounts.

When we use Accounts Payable to record prepayment, we can write a check to the vendor and record it to your Accounts Payable (A/P) account, decreasing the balance until you are ready to enter the final bill.

Here's how:

  1. Create a check for the vendor.
  2. Enter the bill.
  3. Apply the prepayment to a bill.

Then, when using an Asset account to track the prepayment, we can write a check to the vendor and record it to an Other Current Asset (OCA) account, increasing the balance until you are ready to pay the final bill.

  1. Create an Other Current Asset (OCA) account to track prepayments.
  2. Write a check to your Vendor.
  3. Enter the bill when the items arrive.
  4. Pay the bill balance.

Also, I suggest consulting with your accountant a QuickBooks Certified ProAdvisor. That way, they can guide you with the best option to use and ensure the accuracy of your books.

I'm leaving you this article to help you track and manage your expenses in QuickBooks: Enter Expenses, Pay Bills, Write Checks, and Add Suppliers.
 
Feel free to come by anytime if you have other questions or concerns. I'm always happy to help.
Terms & ConditionsAccessibility statement