Are you a business owner who often hires subcontractors for various projects? If so, you may wonder how to pay them through MYOB (Mind Your Own Business) software. MYOB is an accounting software program that helps small businesses manage their finances, including payroll. Here`s a step-by-step guide on how to pay subcontractors in MYOB.

Step 1: Add the subcontractor to MYOB

Before you can pay a subcontractor, you must add them to MYOB. To do this, go to the “Card File” menu and click on “Card List.” Next, click on “New” and select “Supplier” from the drop-down menu. Fill in the subcontractor`s details, including their name, address, and phone number.

Step 2: Enter the subcontractor`s payment details

After you have added the subcontractor to MYOB, you need to set up their payment details. Go to the “Payroll” menu and click on “Payroll Categories.” From there, click on “Wages” and select “Create New.” Enter the subcontractor`s payment details, including their hourly rate or fixed fee.

Step 3: Create a bill

To pay a subcontractor, you first need to create a bill. Go to the “Purchases” menu and click on “Enter Purchases.” Select the subcontractor`s name and enter the date and amount of the bill. Make sure to select the appropriate category for the payment, such as “Contract Labor.”

Step 4: Pay the bill

Once you have created the bill, you can pay the subcontractor. Go to the “Purchases” menu and click on “Pay Bills.” Select the bill you just created and enter the amount you want to pay the subcontractor. Choose the payment method, such as direct deposit or check, and click “Record.”

Step 5: Record the payment in MYOB

After you have paid the subcontractor, you need to record the payment in MYOB. Go to the “Banking” menu and click on “Spend Money.” Select the payment method you used and enter the amount you paid the subcontractor. Choose the subcontractor`s name from the drop-down menu and select the bill you paid. Click “Record.”

In conclusion, paying subcontractors in MYOB is a simple process that involves adding the subcontractor to MYOB, setting up their payment details, creating a bill, paying the bill, and recording the payment in MYOB. By following these steps, you can ensure accurate record-keeping and timely payments to your subcontractors.