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Reports and accounting
There is no such thing as reimbursed expenses for a vendor, only for emloyees.
Posting income and expense to the same account, netting, is bad form and the IRS frowns on it, though I can not find an actual prohibition.
I understand the requirement to get gross income as low as possible for state tax reporting (we have the same thing in Texas for franchise fees [a tax by anyother name is still a tax]), but you still have to defend the accounting in a state or federal audit.
IRS Returns & Allowances - instructions for Sch C
Report your sales returns and allowances as a positive number on line 2. A sales return is a cash or credit refund you gave to customers who returned defective, damaged, or unwanted products. A sales allowance is a reduction in the selling price of products, instead of a cash or credit refund.
I read this as, and personally be willing to argue with an auditor, that since the expense and subsequent sales price are the same, that for gross income purposes, it is a sales allowance. post the sales income to income and the expense to returns/allowances = a wash for gross receipts.
JMO, YMMV