I am hoping someone might be able to help me - I assist book-keeping for a company who works as a marketing / web design type company.
The company contracts out other companies to assist in its works, for example if a client requests us to produce brochures for them, we will contract another company to produce these brochures. I am just trying to figure out how I would book-keep for this when the other company bills us for the production of these brochures? what expense would I class it under, is it a direct expense, sub-contractor cost as I am assuming I don't just put it under the 'artwork' expense as the expense is in relation to a job rather than an actual expense of the company?
No, it wouldn't just be a general expense or overhead. It is a direct cost attributable to a particular sale therefore it should be accounted for as a cost of sale or direct expense.