Let's say you hire a writer to create a brochure for you. It takes them
15 hours to complete the project, and you pay them $20 an hour. Let's
assume you have already added the independent contractor as a vendor in
In the Rate field, enter "20".
In the Account field, select the expense account you created when you
added the independent
contractor to QuickBooks.
When the writer sends you an invoice for the project,
enter a bill.
On the Items tab:
In the Items column, select Marketing Writing. QuickBooks
automatically enters 20 in the Cost column. This is the rate you assigned to
the Marketing Writing service item.
Enter 15 in the Qty column. QuickBooks automatically calculates the total
cost of the service item (15 x 20 = 300) and enters that number in the Amount