Accounting for Outsourced Work

[EymardSiojo]

Hi,

I want to know how to account the services or jobs we affiliates outsource.
For example, I have a web design company and I just hire people from odesk when I have some clients. I am like a broker or something.
I wonder how to plot this on my Financial statements.

Thanks a lot.

 

[K]

It's the same as anything you do.

You're NOT employing these people to your company you are merely paying for a service and charging for one.

SO, you need to save your oDesk invoices when paid.

and also make sure you invoice all your clients per job.

Money going to oDesk is outgoings.

Money coming in from clients is incomings.

Aslong as it's all recorded with invoices and you have the bank statements to back it up, your good!

 

[EymardSiojo]

So it is like service fee,

and I will put it into operating expense as professional fee expense..

Thanks man.

 

[K]

So it is like service fee,

and I will put it into operating expense as professional fee expense..

Thanks man.

I'd note it as "project management"

That's what you are doing effectively, managing a project for a client and taking a cut of the profit...nothing wrong in that.

 

[SamCharlos]

I believe that every company, whether it is a big company or a small business, should have an accountant. An accountant solves most problems, and the value of an accountant is determined by his or her ability and experience. In case you are not ready to use the services of an accountant, then you should do the bookkeeping yourself.
P.S. I am talking about a broader understanding of financial accounting.

 

[Affinos]

It's the same as anything you do.

You're NOT employing these people to your company you are merely paying for a service and charging for one.

SO, you need to save your oDesk invoices when paid.

and also make sure you invoice all your clients per job.

Money going to oDesk is outgoings.

Money coming in from clients is incomings.

Aslong as it's all recorded with invoices and you have the bank statements to back it up, your good!

It is difficult to do these calculations on your own because you need to be educated in the field. It is better to hire an accountant with experience, which is more cost-effective. An accountant at Tunbridge Wells once helped me a lot. I still consider him to be the best of the best. Go here Accountants in Tunbridge Wells for the best accountants in Tunbridge Wells.