Our business pay contractors and subcontractors. We have some subs that work with more than one contractor. On each particular job (class-which is done by the property address) the checks for the subs are written as two-party checks to the sub and the general contractor for that job (don't even get me started on the reasons why we have to do this). Our "financial guy" has to set each sub up as a new vendor for each contractor he works for. So ABC Heating is in our vendor list about 12 times as: ABC Heating & General Contractor 1, ABC Heating and General Contractor 2, etc......
I have two questions:
- Is he a moron for setting it up this way?
- Is there a better, more efficient way to set it up?
We use Quickbooks Pro 2004
He also tells me that, on an amortized mortgage account, when a monthly payment is made, it will not factor in how much is principle and how much is interest to keep our equity straight. He prints out an amortization sheet when we first set the property up and then manually keys in the payment and separates it into principle and interest.
I have used Quicken 99 for my home checkbook and have never really used Quickbooks but I was able to go in and discover Loan Manager and it appears that Quickbooks will automatically do the principle/interest dispersement on it's own
I would like some feedback to let me know if I am off about my suspicions with this guy.
Thank you for shedding some light!
Anonymous for now ; )