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Post Info TOPIC: Advice on book-keeping


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Advice on book-keeping
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Hi all,

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?

Appreciate your advice

Regards

Kaci

 



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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.

Kris

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BKN Most Innovative Accountancy Firm 2012

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Hi Kris

Many thanks for that, appreciate your reply.

Kaci



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Hi Kaci,

Its a direct cost and forms part of cost of sales, I would take it as sub-contractor cost.

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I was happy with Kris' answer myself but if you like to answer already answered questions.....whatever floats your boat.

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