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433 Views 3 Replies Last post: Feb 7, 2018 8:44 AM by Lighthouse24 RSS
Level 0 1 posts since
Apr 12, 2017
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Feb 7, 2018 5:09 AM

Reporting Split Royalties in Quickbooks

Hi, I am hoping someone has accounting experience with Quickbooks here. My question is two fold:

 

1. I'm wondering how people record Royalties in Quickbooks as a forprofit publisher.

 

2. We intend split the Royalties to cover overhead and paid royalites to individual authors. We want to streamline and simplify as much as possible. a. Can we record Royalites as an income line item and

b. then how do we report what we pay out to authors? Should we set up vendor accounts for each author and pay them as an expense? Or is there a simpler way?

c. Do we need to record each royalty paid on individual book sales, as a monthly batch per title or as a whole batch as recieved from CreateSpace?

 

Hope that is clear. Thank you.

Level 4 2,667 posts since
Jul 2, 2011
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1. Feb 7, 2018 5:22 AM in response to: RachelBTRI
Re: Reporting Split Royalties in Quickbooks

The simpler way is to not do it like that.  You'll be writing little checks to the other author forever.  The easiest way is for one of you to buy the other one out with a mutually-agreed upon amount.

Level 5 5,595 posts since
Jan 17, 2010
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2. Feb 7, 2018 6:02 AM in response to: RachelBTRI
Re: Reporting Split Royalties in Quickbooks

You'd be best served by retaining the services of an accountant and asking them.

 

Sarah
Editor & Book Designer
http://sleepingcatbooks.com
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Level 5 13,021 posts since
Aug 22, 2008
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3. Feb 7, 2018 8:44 AM in response to: RachelBTRI
Re: Reporting Split Royalties in Quickbooks

"Royalties" paid to you as a publisher by CreateSpace are income (not royalties). The royalties you pay to authors are an expense, and part of the publisher's cost of good sold. The publisher must file a 1099 with the IRS (with a copy to the author) for each author to whom more than $10 in royalties is paid. The publisher may also be dealing with income tax withholdings for some authors. For these reasons, many small publishers maintain a dedicated ledger account for royalty expenses, separate from other accounts payable. As Sarah suggested, a visit with an accountant might be beneficial.

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