If you do this, your paying the GC's taxes,
I'm trying to follow you here. Please explain.
I never presented a bill as a sub contractor that covered the GC's Cut. (including any business terms of accouting you might won't to include)
I was an expense to any project, and I know that was covered by the cost of the job, and I then went into my own
Gross profit - Expenses = Net income
it frankly is not how business is done in general(MO).
You are certainly entitled to your opinion but quite frankly it is done every day.
What Type of Billing would you call this please include the exact accounting term that will cover this. EC billing for a GC, WE wish but truely it ain't going to happen. This is my point, its a bid asked by the GC of the EC.
Theres no tax relief for the EC bill's he's down for $1000.00,
How did we get onto tax relief ? A GC gets material prices and prices from his subs, bids and gets the job, does the job and gets paid (hopefully) more than what his costs of materials and subs work, has to show the profit and pay taxes on it.
My arguement is, "IF" The EC will be billing 1000.00 theres 1K on the Books, How do you show 90.00 or any amount of payment in accounting terms on this, A smart GC is the Biller, he doesn't show his subs numbers is my point here. The EC can't use
Gross profit - Expenses = Net income. Till they recieve their money.
Depending on the State where one resides there could also be various taxes involved. Let me put it another, maybe I've said it already no Sub is going to bill for a Prime or GC, or better yet anyone that brought you in
where a Prime - sub relationship is under stood, this will not happen.
there's no paper trail to the GC as to being "PAID".
Granted. As I mentioned there has to be some trust in that the GC will pay you. Does your supply house ask whether your customers have paid you or do they trust that you will pay your monthly bill ?
MO, it has nothing to do with trust its accounting, and money exchanging hands. the Supply house, other expense and bills that will occur is in(or should be) the total price of the bid, what the EC will do is "an estimate" the GC wanted.
The EC business cost and expenses are not of the concern of the GC's
(in the Big Picture) it should be covered in there Bid, A theme that is raved around here...
In the same breath theres no presentation of the EC's exact bill from the GC to the Client,
There wouldn't be in this scenario. The GC is your customer and not the end user or homeowner
Wow, we agree on something!
the GC's letter head is covering the proposal, he gets the business write off, IE, debt to EC.
There's no write-off. Your price to the GC is a cost of sale. Basic acounting dictates : Gross sales - Cost of goods sold (and sub's work in this case) = Gross profit. Gross profit - Expenses = Net income.
Do me a favor, next time your asked to make an estimate, go ahead and ask the GC if you can bill for them!
Bumping the Keyboard...
Why is it your all of a sudden letting the GC Bill ? Weren't you arguing for the EC to Bill for the GC ? my whole arguement is I've never billed for any other vocation.
Your right the EC is an expense to the Job. I'm not an accountant nor practice it. But I will stand firm with my previous statement of that the GC's letter head will bill. Maybe I shouldn't have said the words, "write off", "True That"!
Frankly having re-read this several times, and what I posted againest, I've come to think, you like I, doing some selective, thinking and reading, as I know I tend to do, and you didn't take in my total presentation, even with the the misplaced or lacking accountant terms and functions, on my part, maybe I shouldn't have threaded.
