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claypipeM
November 18, 2020
Question

Split profits

  • November 18, 2020
  • 1 reply
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I run a small record label, and I split the profit from each release 50/50 with the musician involved. I work out what the profit is on a spreadsheet, then pay the artist, they don't invoice me. How should I categorize these 'payments out' in QuickBooks?

Thanks Frances

1 reply

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EmmaM
November 18, 2020

Hello claypipeM, How are you recording the income from the releases? Are you recording the 100 percent income to the business? If so then in terms of profit and loss you would need to record the expense of paying the artist, in a sense you are paying them for a service. It would be a case of creating an expense category for this and then recording the expense in the +symbl>expense and setting the artist as the payee. That way on reports both things will show on the p and l and you can see them, If you are looking to record this a different way let us know

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claypipeMAuthor
November 18, 2020

Thanks yes thats exactly how I was hoping to do it, I'm quite new to quickbooks but will look into your suggestions, and see if I can figure out how to set it all up.

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claypipeMAuthor
November 18, 2020

One question could you let me know what you mean by +symbl>expense  ?

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