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BellvilleHandy
January 6, 2018
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New to Quickbooks. When to use the different expense account types? Need help setting up and filing 1099s.

  • January 6, 2018
  • 1 reply
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I just purchased Quickbooks to get everything in order for 2017 taxes. I am working on inputing expenses and am unsure of the difference in the types (Job supplies, Other Business Expenses, Misc. Expenses, Uncategoried, etc.). And for gasoline expense, is that considered "Travel" or "Car & Truck"? Is there a list that explains what each one consists of? Also for 1099 contractors, what do we need to do to or get so we can send out their 1099? Sorry for all the questions, this is all completely new to us.

 

 

(Title has been edited by moderator for clarity)
    Best answer by mcwagner

    First, I'm a CPA.

    Send vendors a IRS form W-9 to request their address and EIN.  You don't necessarily need this form, but you need the information on the form to send a correct 1099-MISC.

    The categories only need to make sense to you.  Not everyone does it the same.

     

    Generally I put gasoline and repairs into auto expense, and use travel expense for airfare, hotel, taxi, etc. 

    Office supplies are things like pens, paper, ink, toner, tape, etc.   Job supplies would be things that relate to the production of income.  For example, if you are in the flooring business, job supplies would be knife blades, adhesive, wood glue, etc.  Things that are related to the work you do. 

    You can get a good idea of good categories to use by looking at the Sch C categories.  If in doubt, more detail is better than less.  You can always combine categories for the tax return.  Remember, the categories need to make sense to YOU, not anyone else.

    Hope that helps.

     

    1 reply

    mcwagner
    mcwagnerAnswer
    January 6, 2018

    First, I'm a CPA.

    Send vendors a IRS form W-9 to request their address and EIN.  You don't necessarily need this form, but you need the information on the form to send a correct 1099-MISC.

    The categories only need to make sense to you.  Not everyone does it the same.

     

    Generally I put gasoline and repairs into auto expense, and use travel expense for airfare, hotel, taxi, etc. 

    Office supplies are things like pens, paper, ink, toner, tape, etc.   Job supplies would be things that relate to the production of income.  For example, if you are in the flooring business, job supplies would be knife blades, adhesive, wood glue, etc.  Things that are related to the work you do. 

    You can get a good idea of good categories to use by looking at the Sch C categories.  If in doubt, more detail is better than less.  You can always combine categories for the tax return.  Remember, the categories need to make sense to YOU, not anyone else.

    Hope that helps.

     

      B
      BellvilleHandyAuthor
      January 6, 2018

      Yes that is a big help thank you! None of our sub-contractors have an EIN so do we just use their SSN?

      mcwagner
      mcwagner
      January 6, 2018

      yes, you can use their SSN.

      if you don't have an EIN, you should get one.  this way you don't have to give them your SSN (on the 1099).

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