How should client holiday gifts be classified?

Good day, bavolpe.

Thanks for visiting the Community.

Your client holiday gifts will be considered as an expense account. Let me guide you in setting up your client gift in the Chart of Accounts.

Here's how:

1. Go to the Gear icon, then click Chart of Accounts.            

         2. Select the New button.

      3. On the Account Type, choose an Expense.

      4. On the Detail Type, enter Other Business Expense.

      5. On the Name: Enter Client Gift.

      6. On the Description: Enter the description of the account.

      7. Hit Save and Close.

Please know that gifts are limited to $25 per person as a deductible expense for taxes. You may refer to this IRS site about business gifts deductible.

You can check this article for future reference on creating a new account in your chart of accounts in QuickBooks Online.

I wish you and your business continued success. Please let me know if you have any other questions.