Goldenseal Accounting Software Topics-- Vendor Accounts

Vendor Accounts

What is the difference between Material Suppliers, Subcontractors and Other Costs?

Goldenseal accounting software includes three different types of vendor accounts. Usually it doesn't make much difference which you use for each vendor, but there are a few cases when it is important to use a particular type.

Material Suppliers

Use Material Supplier accounts for anyone who provides you with tangible supplies, or items for resale.

Subcontractors

Use Subcontractor accounts for anyone who provides you with services.

Always use a Subcontractor account in these cases:

If you give them a 1099 report at year-end.
If you need to track insurance coverage for them.

Other Costs

Use Other Cost accounts for utilities, insurance, advertising, tax agencies and other vendors who don't supply materials and who aren't subcontractors.

Always use an Other Cost account in these cases:

If you pay them sales taxes that you collect from customers
If you pay them payroll taxes that you collect from employees
If you pay them vendor withholding (or receive a credit from them for it)

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