What should contractors be tracked as?
submitted by Walter Seznick

Ryan Hu

Contractors are typically tracked through accounts payable records, since you're paying them.

You would want to set up separate vendor profiles for each contractor. That way you can store their payment terms, contact details, and tax ID.

When you get invoices from a contractor, you can code them to specific projects or expense categories. Those payments are recorded as liabilities until you settle them.

You can keep a subcontractor ledger if needed.

Simon

Make a list of all contractors. Keep their contact info and payment details. In your records tie invoices to the contractors they came from. Track payments to those contractors.

Your payments to contractors will probably go on accounts payable.