Help with quickbooks please?

Question

Hi there,

I work as a sole trader doing painting and decorating. I purchased quickbooks to help me with my books. I'm getting stuck on loads of things though, the main one being the following:

I'm trying to set up an invoice for a job. I think i've worked out how to charge for my labour but i'm really struggling to add on materials (i.e. paint). I've had to buy the paint originally with my own money and want to pass on THAT EXACT AMOUNT back to the customer without me having to pay income tax on the money they pay me. Is this possible? Am i being stupid? Obviously for each job i do the amount i have to charge for materials will change as well. PLEASE HELP ME...

Answer 1

I can't help with actual Quickbooks (I would have said a simeple spreadsheet was enough for your business). However, I can advise you that you need to invoice for materials to your clients, as you have stated. You then have to include the purchase of those materials in your outgoings. By doing this, you will have an income from the materials (as invoiced) and an equal outgoing - one will cancel out the other, which will give you tax releif on the purchases.