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Sub-contractor expense revenue recognition

Hi,

I have a sub-contractors, and have agreed with my client to invoice all expenses from my 'staff'.  Should I recognise this element of my invoices as revenue, debiting the payment to my sub-contractors as an expense, should I net them off in a P&L account, or should I account for them all on balance sheet through a control account?

Any help would be gratefully received.

Kate Holden

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24th Apr 2012 09:34

Revenue

I hope you are not in the building trade.

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By zebaa
24th Apr 2012 12:32

I think the first, for several reasons. First it is clearer , with all your transactions being within within one set off accounts. Second there may be a profit margin (I hope). Third, there may be tax (CIS) to pay. Will that do for starters?

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