Best way to record donated services?

Thank you for providing tutoring services to students who cannot afford to pay for lessons, Vicente. It's my pleasure to assist in recording these favors in the program. 

Before proceeding, please consult your accountant to determine if the contribution affects your gross sales. They can also suggest other methods based on your specific situation.

To record the services you donated, let's start by creating an invoice to track the income. Once done, make a charitable contributions account by following the steps below:

1. Go to the Gear icon, then select Chart of accounts.
2. Click New.
3. In the Account dialog, choose Expenses from the Account Type dropdown list.
4. Pick Charitable Contributions from the Detail Type dropdown list.
5. Enter a Name for the account (Charitable Contributions), then tap Save and Close.

Next, here's how to make a product/service item for charitable contributions:

1. Go to the Gear icon, then Products & services.
2. Select New.
3. In the Product/Service information panel, determine the type of service.
4. Enter a Name for the item, then tick the I sell this product/service to my customers option checkbox.
5. Choose the Charitable Contributions account you created from the dropdown list in the Income account field.
6. Tap Save and close.

Once done, issue a credit memo to reflect the donation's amount. You can then apply it to the invoice you created. See Steps 4 - 5 of this article for the complete steps: How to record donations or charitable contributions in QuickBooks Online.

Additionally, refer to this link that covers all the tasks you can do in the program: Topics about your company's income and customers.

Please let me know if you have follow-up questions or concerns with donations. I'll be around for you. Take care and stay safe.

Thank you. Correct me if I'm wrong, but doesn't your solution refer to non-profit income? I.e. a donation that my business would have received?

In this case, it is my business doing the donation.

Or perhaps I'm misunderstanding something? Please let me know either way and thanks!

Thank you for getting back to the thread and for the confirmation. I see that you're providing tutoring services to students who cannot afford to pay for lessons. I applaud you for that. I'll chime in and would like to inform you of some updates.

My colleague JamaicaA already updated her answer on how you can record the services you donated. You may check it out again.

I'm including these articles you may use in the future as you go through tasks in QuickBooks:

• Track funds you receive from donors in QuickBooks Online.
• Enter and manage bills and bill payments in QuickBooks Online.

If you have more questions about your donated services, leave a comment below. I would be more willing to answer all of them ASAP. Stay safe!

@vicenteborga 

When you donate a service, the only expense you have is your cost in labor and supplies.  Those are recorded when you pay your wages and/or when you purchase supplies.  You can't expense what you would charge for those services.  

Thanks. It's a little complicated by the fact that I, the owner, am one of the tutors. Normally, I don't pay myself a wage when I do for-hire tutoring, I just deposit the proceeds from the tutoring directly into my business' bank account, which I own 100%. So, there are no "wages" being paid out when I volunteer my own time. That said, I definitely assign a $ value to my time, so I'd like to account for this somehow. Does this make sense?

@vicenteborga 

Yep, it makes sense.  However, from an accounting and tax perspective, if you donate your time (or any other tutor's time), the only expense you can deduct is what you pay yourself or the tutors for the time they are donating in kind.  In other words, if you don't pay yourself, your time is being donated for free and there is no expense to deduct because you haven't incurred any expense.  You are missing out on revenue you could otherwise be charging to other customers, but there is nothing to record from an accounting perspective and no tax deduction.