Hi everyone, I'm hoping this question will be quick and easy to answer. My client puts on events in the UK and occasionally has performers fly in from abroad. In those cases, he books and pays for their flights himself.
Should this be recorded as Cost of Goods Sold, since it's an expense incurred specifically in putting on the event? Or would it be a travel expense? I'm hesitating over the latter as the performers aren't employees.
Many thanks in advance for any guidance you can offer :)
I would include it in the same category as the performers and COGS as I am sure that providing the travel must form part of the agreement/contract , although depending on the software you use I would still separate maybe as 'performers costs' and then 'performers travel costs'
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
