My client pays me a set amount for SEO per month. I pay Google adwords and a company to manage it out of that money. How do I claim that? cost of good sold?

[brad-itroadmap-c]

Client pays 5000 to me I pay 2,500 to Adwords and 500 to a company to manage adwords each month, I pay 500 to a subcontractor and do the rest of the work myself making 1,500. How do I claim the Adwords and company to mange it that I pay as expenses?

[KristinaK]

Cost of Goods Sold (CoGS) is appropriate for Adwords. 

Managing Adwords can fall either under CoGS or operating expenses.