Disclaimer: I’m not asking for tax advice. I’m asking about conventions in bookkeeping and naming of accounts. I’ve already consulted a tax pro about the tax needs of my business. Answers to this post will not change how I complete my taxes.
Background: As an element of my small business, I have contracted an individual to travel out of town in his van and pick up merchandise from various wholesale vendors and private sellers that is to be brought to my shop and then resold online. This individual is being treated as a contractor, and as such is not a W-2 employee. A 1099 will be filed.
I’m converting my accounting system from a bunch of Excel spreadsheets into Quickbooks.
Question: What expense account would this kind of expense fall under? If the default accounts in Quickbooks don’t include an appropriate expense account, what would be a name for this expense that would fit with accounting conventions?
Thanks in advance!