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FloraY1(Champion)Champion
11 Feb 2022

Some IT Service work has been outsourced to some individuals and other companies. Just wondering which expenses account should be allocated for accounting and bookkeeping purposes? Thanks

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955 views
2 replies

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Most helpful reply

BlakeATO(Community Support)Community Support
13 Feb 2022

Hi @FloraY1


The cost of outsourcing work is a general business operating expense in the business' tax return. It isn't an operating cost for employing people because your business is not employing people (even if they're contracted individuals).


But for how you record that in bookkeeping is up to the business. Unfortunately, we can only help with the tax part of things.

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Most helpful reply

BlakeATO(Community Support)Community Support
13 Feb 2022

Hi @FloraY1


The cost of outsourcing work is a general business operating expense in the business' tax return. It isn't an operating cost for employing people because your business is not employing people (even if they're contracted individuals).


But for how you record that in bookkeeping is up to the business. Unfortunately, we can only help with the tax part of things.

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Outsource IT Service work to some individuals and other companies | ATO Community