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thehandcraftedparty
March 16, 2024
Question

Category for Hire Items

  • March 16, 2024
  • 1 reply
  • 0 views

I am an events business and I create balloon displays, incorporating items that I hire out to customers.  My question is, if I buy new items into my business, that will then go on to be used by me to hire out to my customers, what category should I list the receipts in for these items.

 

Another example of this, I hire light up numbers from a local company, and sell that hire onto my own customers, so I will take a small amount as an arrangement fee, but the majority of what I take is to cover the hire of the item. When that company send me an invoice, what should I categorise that as? 

 

1 reply

J
JanbonN
March 16, 2024

Thank you for the details you've shared, @thehandcraftedparty. Allow me to share information about categories in QuickBooks Self-Employed (QBSE).

 

While we cannot suggest a specific expense category, you may refer to this article with the list of categories you can choose: Allowable and disallowable expenses explained. I highly recommend reaching out to your accountant for help on which categories to use.

 

Once you've selected a category, you can categorise your expenses by following these steps:

 

  1. Go to Transactions.
  2. Navigate to the transaction you want to categorise.
  3. Select Business if the transaction was for business, or select Personal for personal. If the transaction was both, select Split.
  4. Review the category in the Category column. QuickBooks tries to categorise transactions for you.
  5. If you need to change the category, select the category link. Select a general type, and choose a more detailed category. Alternatively, you can use the search bar.
  6. Once done, click Save.

 

Additionally, you can also split a transaction between business and personal, or into multiple categories.

 

If you have any follow-up questions about expense categories in QBSE, please let me know, and I'll be happy to help. Have a great day!

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