I have created a project Community Massage London where a group of 4 sole trader therapists provide massages at community and other events. I have invoiced the client using the project tab in Quickfile,
I have received the invoice from one of the therapists I am unsure how to enter this in QF there doesn’t seem to be a tab for projects under purchases.
I have created a bank account in Quickfile for the project as I wish to identify the money coming in and out of this project separately. (I thought that this should help if I tag the income from the contract to this account and pay therapists from this account)
I am still unsure how I tie up the expenditure -paying for the services of the therapist to the purchase of the contract to provide the service.
Also should I as a director of the company provide massage services for the project how would I account for this?
I hope you can help me sort this. thank you Teresa
You can create a purchase invoice as normal, and then add the project tag to it afterwards. On all invoices, purchases, and estimates/quotes, you will see this option in the top left-hand corner. Clicking it will add you to create a new project tag, or assign it to a new one:
While you can create a separate bank account for the project if you wish, with the project tag, you can track profit and loss for that specific project, and the cash movement too. You can access all this under Reports >> Projects, and then pick your project.
You would just create a standard purchase invoice. If the expenditure is as a result of providing money for the business, you could tag it as ‘General Purchases’. It may be seen better to log this against something like sub-contractors or something similar. However, I’m not an accountant so it may be best to seek clarification on that.
As the director, you wouldn’t personally have any expenses (other than perhaps wages), but rather just the cost of providing the service (room booking, promotional material printing, etc.), which you should have an invoice or receipt for. These would be just created as a purchase invoice, and if you wish, tag them to the project too.
While you may have a wage associated with this, you’re not able to associate this directly. You can, however, account for this within the project itself. Take a look at this topic for info.
I hope that helps