I just wanted to know just out of curiosity what exactly do people who outsource work do when it comes to recording expenses? Are those expenses even recognized as expenses because I assume people who outsource work do so over email and through the web sending payments through paypal... their is no invoice involved, no employees etc.

Please keep in mind though, I am only talking about people who are in other country so there is no 1099 involved here...

Should this outsourcing expense be recorded as a business expense?