Recording agency payments out & commission

Support
1

Hi there,

I have just set up my Quickfile account. I am a talent agent and have managed to record the invoices out to clients who book our talent as general invoices. I now need to record the payments made to the Talent from these payments and record our commission taken . So my question is what is the best way to do this on Quickfile. We have our tax returns due shortly and I am stressing about getting this recorded correctly and that it is clear to the accountant. Thank your for your help

2

Hello @JustineB

How does the business model work

Is it a case of you receive a payment (e.g. £1000) and pay the client (e.g. £900) and retain your commission? (e.g. £100).

3

Yes thats how it works yes. We invoice the company for the Talent’s payment they then pay us and we then pay the talent less our commission and we send the talent a remittance advice notice showing how the breakdown of the payment. Thank you for getting back to me so quickly

4

Hello @JustineB

You would do this using a merchant account.

  • Create a new dummy bank account.
  • Tag the payment (e.g.£1000) as a transfer to the new account.
  • Pay the invoices for the talent and commission using the new account.
5

OK bare with me here as I am a complete newbie sorry, First question is how do I create a new Dummy Bank account? is this separate/ in addition to the Monzo account I set up yesterday ? thanks J

6

Hello @JustineB

Here is an example but the principles are the same

https://support.quickfile.co.uk/t/handling-payments-from-merchant-accounts/8865

7

thank you for your help, I will have a read through and see if I can work it out. J

8

Sorry another question, Do I input the details for the Talent’s payment from us as a General Purchase and set it out like a remittance advice which includes the commission details?