For credit card cashback rewards, which category should you assign in transactions (Quickbooks Self-Employed)?

Hi there, sbruekler.

I'm here to help and share information about assigning categories in QuickBooks Self-Employed (QBSE).

Cashback is commonly used to describe a credit card perk that gives back a small percentage of the total amount spent on each purchase, or on purchases that exceed a specific dollar amount.

Typically, the recommended approach is to deposit the cashback amount and designate it as "Other Income" in your accounting system. However, since this isn't available in QBSE, I suggest consulting your accountant or accounting professional to ensure you select the appropriate category for this type of transaction.

To categorize a transaction, here's how:

1. In QBSE, go to the Transactions menu.
2. Locate the transaction on the list.
3. Select Business if the transaction was for business, or select Personal for personal. If the transaction was both, choose Split.
4. Review the category in the Category column. QuickBooks tries to categorize transactions for you.
5. If you need to change the category, click the category link. Select a general type, and choose a more detailed category.
6. Once done, hit Save.

To know more about managing and categorizing transactions in QBSE, check out this article: Categorize transactions in QuickBooks Self-Employed.

I'm also adding this article that tackles Schedule C categories in QBSE for future reference: Schedule C and expense categories in QuickBooks Self-Employed.

Please let me know if you have additional questions about this or anything else. I'll be here to assist. Take care.

Hi! “Other Income” does not exist as a category in QBSE - what would the most appropriate category be? I looked through all categories and the best I could find was “Credit Card Interest” but that doesn’t seem right either.

Thank you for elaborating on your concern about finding the Other income category in QuickBooks Self-Employed, @sbrueckler. I'm here to share some verification about this matter.

There's no Other income category that matches a line on your Schedule C. I agree that a Credit Card Interest account is not for cashback rewards. It's for business credit card interest, loan interest, and other business-related interest.

To select the correct account to use when categorizing, I highly suggest consulting an accountant. They can help you choose the best one.

Here's more info on Schedule C categories: Schedule C and expense categories in QuickBooks Self-Employed.

Feel free to open this guide to learn how to organize your income and expenses: Categorize transactions in QuickBooks Self-Employed.

Fill me in if you need more help managing your income in the program. I'll be around to assist you. Stay safe and take care always.