I recently used Upwork for the first time and as someone who manages their Accounts in the Accounting Software Xero, I was wondering how clients are recording these transactions for their Bookkeeping, if as a client Im not recording this as an employee, is it a Purchase? or an Expense? if so what type of Expense is this?
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I would think it would fall under "expense" or "cost of doing business", or in the case of say, a logo or a website or a brochure, etc., it would fall under "marketing".
But I flunked bookkeeping in high school, so what do I know? 🙂
Well, I should add that I'm a freelancer and not a client - so hopefully someone else with better knowledge than I will come along.
I suppose its important to mention my business is Web Design and I'm paying a Freelancer to do Web Design for another client, so In this case it wouldn't be regarding as Marketing. I think since its a core part of my business, I'm leaning towards it being a Purchase rather than an Expense, but unsure.
Stu, the best idea would really be to discuss this with a qualified accountant in your country. Even if you do your own accounts, you really want to make sure that you get them right.
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