To track the income and expenses for work performed by subcontractors (or
other temporary employees), set up service items for the work your
subcontractors perform, making sure to indicate that each item represents
subcontracted work. Once you have set up the items, you'll be able to pay
your subcontractors and pass on subcontracted expenses to your customers.
The way that you track work for subcontractors differs depending on whether
you track time for the subcontractors in QuickBooks.
If you track the
You enter the subcontractor's hours in QuickBooks, or have the
subcontractor use the QuickBooks Timer program and send you the exported
hours. When you want to pay the subcontractor, you can automatically transfer
the hours to a check or bill. To pass on charges to your customers, you
transfer the same hours to an invoice.
If you don't track the
The subcontractor sends you an invoice for the work performed. When you pay
the subcontractor, you use the detail area of the check or bill to specify the
number of hours the subcontractor spent on each service item. To pass on
charges to your customers, you create invoices and select the billable hours
from a list presented by QuickBooks.