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gaheley
Level 1

How do you identify prepaid income vs earned income and reconcile back to sales e.g. in buying 10 classes and then as they are used

 
1 REPLY 1
MadelynC
Moderator

How do you identify prepaid income vs earned income and reconcile back to sales e.g. in buying 10 classes and then as they are used

I have some information to share with you, @gaheley.


Most income that you'll receive is likely Earned income. If you perform a service for someone and invoice them for it, its payment is classified as such.


I'd like to take care of your concern myself. However, there are several ways to record these transactions depending on the method you used. It would be best to reach out to your accountant to help you identify these income.


You might want to visit this reference to learn the process of recording customer prepayments in QuickBooks Online. It provides steps to identify the prepaid amounts in the program.


If you have additional questions or concerns with income, let me know by posting a comment below. I'll always be around. Take care!

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