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ZaddY · 03-30-2008, 05:50 PM

flexdeck literally answered your question but let me go ahead and elaborate a little.

This should be considered other expense or "Outsourcing Expense".

Let me give you an example as I outsource work to people all the time who are not in the U.S.

You get a project to make a website. You ask the client for $500. You get $500, that is your income. I am assuming that you know exactly what you are doing and you don't need any help. Your client calls you and tells you that he wants you to write a press release also and because this client is very loyal, you say that you will take care of it. Now you have to do something that you don't know, you have $500. You hire someone else because you want quality work and pay that person $20 to write a press release. That is the expense you incurred during the project.

I hope that made sense...

03-30-2008, 05:50 PM	#3 (permalink)
ZaddY Status: Owner/Administrator Join Date: Mar 2008 Location: Berkeley, CA Posts: 160	flexdeck literally answered your question but let me go ahead and elaborate a little. This should be considered other expense or "Outsourcing Expense". Let me give you an example as I outsource work to people all the time who are not in the U.S. You get a project to make a website. You ask the client for $500. You get $500, that is your income. I am assuming that you know exactly what you are doing and you don't need any help. Your client calls you and tells you that he wants you to write a press release also and because this client is very loyal, you say that you will take care of it. Now you have to do something that you don't know, you have $500. You hire someone else because you want quality work and pay that person $20 to write a press release. That is the expense you incurred during the project. I hope that made sense... __________________ Zahid H. Lilani