As a growing business, it`s essential to keep track of all your expenses and payments to ensure that you`re meeting your financial goals. Hiring subcontractors is an excellent way to expand your reach and optimize your business operations. However, managing payments to your subcontractors can be tedious without the right tools. QuickBooks is an accounting software that can help you make payments efficiently and accurately. Here`s how to pay subcontractors in QuickBooks.
Step 1: Add your subcontractor as a vendor
The first step to paying your subcontractor is to add them as a vendor in QuickBooks. This step is crucial as it helps you track all your payments to the subcontractor. To add a vendor:
– Click the „Vendors” menu and select „Vendor Center.”
– Click the „New Vendor” button and fill in the required fields, such as the subcontractor`s name, address, and contact information.
Step 2: Create a bill for the subcontractor`s services
Once you`ve added the subcontractor as a vendor, you can now create a bill for their services. To create a bill:
– Click the „Vendors” menu and select „Enter Bills.”
– Select the subcontractor`s name from the dropdown list under „Vendor Name.”
– Enter the details of the services provided under „Item Details.”
– Make sure to specify the amount due and the payment due date.
Step 3: Record the payment to the subcontractor
Now that you have a bill for the subcontractor`s services, the next step is to record the payment made to them. Here`s how to do it:
– Click the „Vendors” menu and select „Pay Bills.”
– Select the bill you want to pay and click „Pay Selected Bills.”
– Enter the payment amount and the payment method you used.
– Click „Save & Close.”
Step 4: Review your payment history
It`s essential to keep track of all your payments to subcontractors to ensure that your business is meeting its financial goals. QuickBooks allows you to view your payment history to subcontractors easily. Here`s how to do it:
– Click the „Vendors” menu and select „Vendor Center.”
– Select the subcontractor`s name from the list of vendors.
– Click the tab that says „Transactions.”
– You`ll see a list of all the transactions you`ve made to the subcontractor.
Conclusion
As a business owner, paying subcontractors accurately and efficiently is essential to the success of your business. QuickBooks provides you with the tools to manage your payments to subcontractors successfully. By following the steps outlined above, you can easily pay subcontractors and stay on top of your finances.
