Upon Ending a Class

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An entry shall be made in the accounts "51015 Instructor Payments" and "20000 Accounts Payable", devoting from 51015 and crediting 20000 the payment owed to the instructor. Issuing a "Bill" through QuickBooks with the account field for the line item set to "51015 Instructor Payments" best does this.

Materials reimbursement can be on the same bill, but have an account number of "510xx", where the account name matches the shop in which the class took place.

To accomplish this, the education department shall export to the bookkeeper:

  • The class name,
  • The amount owed for payroll,
  • The amount owed for materials,
  • The instructor's name, and
  • The location in which the class was held.

The bookkeeper shall be responsible for issuing the bill in QuickBooks.

For material expenses for the classes, there are two options:

  1. The instructor is paid for the materials as income, or
  2. The instructor is reimbursed for the materials

In the first case, a photocopy of the receipt shall be provided to the Asylum, and the expense is recorded under "51015 Instructor Payments". The instructor is responsible for deducting the expense as a business expense, as they choose. It will be reported to the IRS as income.

In the second case, the receipt shall be provided to the Asylum, and the expense shall be recorded under "510xx" and the Asylum will report this to the IRS as a reimbursement, and not as income.

WHAT DOES THE ASYLUM DO WITH THE RECEIPT? OUR FILING SYSTEM?

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