Allowance

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If a company wanna pay a fixed allowance to the freelancers who eventually will engage a project with us. Can we call it allowance although they r not our staff? What's the double entry n what's the supporting document?
 

Steve-LevelUp

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In my view, any payment to a non staff must be supported by an invoice. even if it is called an allowance, it is still a non salary contractor.

The entry would be

Dr. Expense
Cr. Cash (or payable)
 
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In my view, any payment to a non staff must be supported by an invoice. even if it is called an allowance, it is still a non salary contractor.

The entry would be

Dr. Expense
Cr. Cash (or payable)
An individual doesn't have invoice to issue since they r not incorporated as a company
 

Steve-LevelUp

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In this case, it is just a document that states who provided the service, who the service was provided to, when it was provided, and how much was paid for the service. This documented evidence of the transaction is the invoice.
 

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