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Buy nowI am trying to correctly record tips paid to employees. The POS system sends tips over to QBO into a liability account, but the tips are paid in cash after each shift. I need to create a journal entry to get the tips out of the liability account, but what would the other account be, including the type?
Thanks for reaching out to us here, @amanzella.
I'll share some information about recording tips. To create a journal entry for tips would mean debiting your cash and crediting your liability account. However, I recommend contacting your accountant to ensure you're recording it accordingly.
You can visit this link to find accountants based in US: Find a ProAdvisor.
In QuickBooks Payroll, tips are recorded in the payroll accounts automatically. Learn more about tips in the articles below.
I'm attaching this link in case you need help with other payroll-related tasks. It has our general payroll topics with articles, videos, and other posts to our Community contributors: QuickBooks Online Payroll.
Feel free to swing by if you have follow-up questions or concerns with tips. I'll be around to help. Take care and have a good one.
Thank you ! The only cash account is petty cash, would I creat a new one specifically for tips and what should the type be ?
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