How to record performance or talent income and payments

Hello, ad23151.

I'll help you set up the chart of accounts and keep a record of income and expenses.

You can set up income and expenses account for each of the five singers or artists. Then, create a service item for their talents. I'll show you the step-by-step procedure.

Step 1: Create an income account:

1. Go to the Accounting menu, then Chart of accounts.
2. Click New.
3. Select Income under the Account Type.
4. In the Detail Type, choose the appropriate type from the dropdown.
5. Enter the name of the artist or singer in the Name field to easily track their income.
6. Once done, hit Save and close.
7. Repeat the same process for the rest of the artists.

Step 2: Create an expense account:

1. Go to the Chart of accounts screen.
2. Click New.
3. Select Expenses under the Account Type.
4. Choose the appropriate type in the Detail Type field.
5. Enter the name of the artist or singer so you can track their performance compensation.
6. Once done, hit Save and close.
7. Repeat the same process for the rest of the artists.

Step 3: Create a service item for their talents:

1. Go to the Sales menu, then Product and services.
2. Click New.
3. Select Service.
4. Enter your desired name for each artist or singer.
5. In the Income account dropdown, choose the income account you've created for that specific artist.
6. You can enter the amount in the Sales price/rate field.
7. Once done, hit Save and close.
8. Repeat the same process for the rest of the artists.

Step 4: Record income receives for each of the artists:

1. Click the + New icon.
2. Select Sales receipt an on the spot payment for goods or services. Create an Invoice when the customer agrees to pay later.
3. Choose the right customer from the Customer dropdown.
4. In the Product/Service column, choose the service for the specific artist.
5. Enter the necessary information.
6. Once done, hit Save and close.
7. Repeat the same process for the rest of the artists.

Step 5: Record expenses from the service provided by the contractor:

1. Click the + New icon.
2. If you paid something via credit card select Expense. Create a Check if you need to print a check.
3. Choose the contactor from the Payee dropdown.
4. In the Category column, select the service offered by the contractor, you can create new if it's not included in the selection.
5. Enter the necessary information.
6. Once done, Hit Save and close.

If you're unsure which account or detail type to use, I recommend reaching out to your account to ensure your books are accurate.

I'll share the following articles below for more insights in recording transactions in QuickBooks Online:

• Difference between an invoice and a sales receipt

• Learn the difference between bills, checks, and expenses in QuickBooks Online

• Record invoice payments in QuickBooks Online

In addition, I've included this resource to find out which reports are available for your QuickBooks Online version: Reports included in your QuickBooks Online subscription

Don't hesitate to add any details if you have further questions or concerns managing the chart of accounts or recording transactions. We're always here to help you.