How do I account for selling and honouring gift certificates?

beankeeping2017 · ‎February 03, 2022

My client sells gift certificates for services. How do I record them when they are sold, and how do I record them when clients use them? I have created a liability account called gift certificates, and will add a product and service called gift certificate. Most of the time when they are sold they are paid for using the POS system. Do I have to enter them as an invoice and then when they are used how do I balance that?

JamesM4 · ‎February 03, 2022

Hello beankeeping2017,

It's essential you're recording your transactions the right way so you can prevent errors in your books. I'll be glad to steer you in the right direction with this so you can get back to doing what you love.

To ensure accuracy in your books, I recommend contacting an accounting professional to get more info on how to enter the transactions in QuickBooks. Doing this will help prevent any future discrepancies in your books. You can also reach out to accounting professionals on our site using this link here.

I'll also leave this question here so other accounting professional members can chime in. Let me know if you have other questions. I'm here to help.

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How do I account for selling and honouring gift certificates?

How do I account for selling and honouring gift certificates?

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