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crlrsheff


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Subcontracting employees
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I have a client who has three business and sub contracts employees  between the three business. How do I enter this on the accounts?



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C Rickett
ADAS


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Hi

If you mean that employees are employed by company A but sometimes do work for companies B & C, then I would raise a sales invoice in A and post it to Other Income.

Then in B or C's books I would post the invoice to either direct costs or expenses depending on the nature of the work done by the companies.

It probably help if you post a little more info on what the 3 companies do?



-- Edited by ADAS on Sunday 18th of March 2012 11:48:00 AM

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Tony

Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
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crlrsheff


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Thank you for your reply, thats been very helpful .The company is a printing business.

 



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C Rickett
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