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Experienced Member

Title Fee, License and Registration Fees, and Filing Fees for Used Car dealership

I’m working with a Used Car Dealership to set up QB. When they sell a vehicle, they collect Title Fee, License and Registration Fees, and Filing Fees. These fees are paid to the Department of Motor Vehicles when the vehicle is titled. Would these fees be included as income, then prepare an expense account for each fee?
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Established Community Backer ***

Re: Title Fee, License and Registration Fees, and Filing Fees for Used Car dealership

What you are paid is income

what you pay is expense

income is reduced by expense on the P&L

so for those fees it would be a wash with no effect on the bottom line.

 

Yes I would create the expense account per fee, and one income account called pre-paid fees