I run a music studio in which I teach students in saxophone, clarinet, flute and piano. The expenses are relatively low (a little marketing materials) and income is derived solely from the service (no COGS or inventory). I don’t necessarily need to accrue expenses, so I’d like to set it up on a cash basis. In QuickBooks, how can I reflect income without an invoice, or do I need to generate an invoice every time I give a lesson; a hassle I’d rather avoid. Thanks in advance.
Hello there, Joe Joffe.
For Cash-basis accounting method, income is recorded when cash is received. You can use the Sales Receipt or Deposit to record the income. Then, make sure to choose the correct account for the service.
Here are the steps:
You can also check this article for reference: Differentiate Cash and Accrual basis.
Please reach out to me if you have any other questions about QuickBooks. Thanks.
We just started quickbooks online in January. How do I allocate a payment in the banking that belong to invoices that are in this accounting period but have not been entered in quickbooks.
There are different ways to allocate the payment to the invoice, TV2. We can:
Here's how you can pay the invoice manually:
Here's how to connect your bank account and match the invoice to the income bank transaction:
Either way works, TV2. You can always get back to me if you need anything else.