Crowdsourcing services: are they 'sub-contractors'?

Accounting
1

Hi all,

I recently used elance (a crowdsourcing service) to get some graphic work done for myself (i.e. my company). Do I tag this as a general purchase, or as a sub contractor?

Also, if I were to sell some graphic work to a client, and buy the graphic work from a designer in elance, should my payment to elance be tagged as ‘sub contractor’?

Essentially, I’m trying to figure out the best way to tag buying services from crowdsourcing sites, when they are for my own company and when they are resold by my company.

Many thanks for any advise
Jose

2

For crowdsourcing I would tag as sub-contractor. It’s a type of labour cost, whereas “general purchases” is a cost of sale.

Disclaimer: I’m not an accountant.

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3

Thank you Glenn, that’s good enough for me!

All the best
Jose

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