posted
Hi there, Netty.
Your accountant is right that cashback should be classified as "Other Income" since it represents money received from cashback rewards. It's also essential to deposit this amount into the correct bank account in QuickBooks Online to help you accurately record and use it to pay your bills.
Rest assured, you can still appropriately track and use the cashback. To do this, deposit the amount into your bank account, accurately record the income, and use it to pay your invoices afterward. Let me provide you with the detailed steps in recording it.
To record it correctly to your bank account, here's how:
- Go to the +New icon. Select Bank deposit.
- Under the Account section, click the Add new button and create a bank account for the cashback you've received.
- Under the Add funds to this deposit, select the Other Income Account in the Account field.
- Enter the amount of the fund.
- Select Save and close once done.
Once recorded, you may pay your invoices and use the funds you've entered recently.
Furthermore, you can refer to this article for guidance in creating an account in your chart of accounts.
Additionally, ensure to reconcile your accounts to keep them accurate and up to date.
If you need further assistance recording your cashback in QBO, please feel free to return to this thread, Netty. We’re here to support you every step of the way.
