How do I set up items to reflect properly on the P & L statement for a film production company?
I work for a small film production company where the owner is a single member LLC and all income is supposed to show up on his 1040. Our income is mostly through grants for which we need to show all expenses and apply them to cost centers. I have set up items for these expenses and they are billed to the grant from the item tab on a bill. I then make all these billable (including payroll) and invoice them to the grantor. This works great to track costs but no income shows up on the P&L. I need to show how much we have income we receive through grants but I can't set the items up as "income" when they are expenses. What am I doing wrong?