Name this income account "Bartered Services." Click the "Save and Close" button. Now create a new expense account named "Barter Expenses."5. Create a new customer and a new vendor account for each member.
1. Dream up a fresh business dossier in QuickBooks. From the leading feed, click the "Compose Inexperienced Convention" Press-stud. Using the Manageable Development Interview, enter the basic pursuit news and click "Ensuing." Obtain the "Typical Service-Based Bag" possibility and then "Closest." Choose the troop of your barter alter as a Individual proprietorship, society or fellowship and click "After." Succeed the prompts to all-inclusive and save the partnership case.
2. Produce the "Barter" bank narration latest of the Facile Transaction Interview. Term this as the "Barter" balance rather than using the alias of the bank as the name. Appropriate the guideline chart of accounts and click "Attached" to all-inclusive the formation. Changes Testament be false succeeding to the "Chart of Accounts."
3. Free the "Chart of Accounts" and grip the "CTRL" and "N" keys. Choose the "Bank" alternative, then enter the name of one of the members of the barter exchange in the "Name" box. Check the box labeled "Subaccount Of" and choose the "Charter" bank as the parent account. Each member of the barter exchange will have a sub-account that makes up the entirety of the "Charter" bank account.
4. Create new accounts for the barter exchange. Open the "Chart of Accounts," hold the "CTRL" and "N" keys, and choose the income account in the "Type" menu.A barter change is a broker between various metier owners that calculates the bill of goods or services that are traded for other goods or services rather than using cash. Setting up your QuickBooks software to behave as a barter replace takes a petty creativity in the setup manner and a separate handling of the customer and vendor dossier. By reason of no cash ever changes hands in a barter modify, there's a contrary mode to creating the "bank accounts" in the association setup.
Instructions
If your new member is the "Pool Service Company," create a new customer by that name by clicking on the "New Customer" tab. When you create the vendor account for each member, add a "-V" to diffenrentiate the customer account from the vendor account.
6. Deposit the fair market value of services rendered into the sub-account of the member providing the services. In other words, if a member named "Screened Enclosures" does work for "Pool Service Company" with a value of $1,000, create an invoice for $1,000 under the customer "Screened Enclosures."
Click the "Received Payments" icon on the home screen. In the "Received From" column, choose the customer "Screened Enclosures-C" and enter $1,000 in the amount column. In this case, the services rendered are considered a payment. Since this isn't actual cash, though, you have to create a "deposit" into the account for the member receiving the services.
7. Locate the "Deposit To" box in the "Received Payments" window. Choose the sub-bank account for the "Pool Services-C," or customer, company.
8. Create a bill for the services provided by "Screened Enclosures-V" vendor that bills "Pool Service Company-V" for the $1,000. Use the "Expenses" tab, then choose "Barter Expense" in the account column. Details of the services provided can be entered into the "Memo" line of the "Enter Bills" screen.
9. Click the "Pay Bills" icon on the Home screen. Choose the sub-bank account "Screened Enclosures" to pay the bill you just entered. Pay to the order of the vendor "Pool Service Company." The $1,000 has then been recorded as services provided by "Screened Enclosures" to "Pool Service Company-V" and has been paid out to the "Pool Service Company-V."
10. Map the 1099 print option. Click on the "File" button and scroll down to the "Print Forms" button. Choose the "1099's" option. This will open the 1099 Account Mapping. Click the "Map Accounts" button. In the row labeled, "Box 3: Other Income" under the "Account" column, choose the "Barter Expense" account. This will help create a 1099 for all members who received goods or services for tax purposes.
