Thanks for the reply. Re. ACH - We don't want to sign up with the QuickBooks Payments feature. Those payment we get via ACH are not from end-users and are not related to processing account that we have. Those are payments from partners and affiliates that happen to pay via bank transfer (ACH rather than domestic wire). So it is not necessary to go through all the hassle of the feature you suggested. I know how to receive those kind of payments into the books (into Undeposited Funds account) When we do actually get the transfer I would like to deposit them as ACH rather than as the other options offered by default (Check, Cash, etc.) I'm Desktop version allow it somehow. There is an option to add a method and I did add it however when I choose it it asks for cc details which has nothing to do with it. ... View more

Following my just-posted above message, now after I posted my message (once I clicked Post) I was logged in to my profile in the community. Very strange. ... View more

That's exactly the problem. When we click on that Sign In button upper right while on any of the community page, we get logged in to our QBO account. And from that QBO account there is no way to move to the online community. So it is kind of a dead-end here. I've been struggling with it for long time now. ... View more

Why can't the article author further explain it? It should not be that complicated. I am sure there some savvy and knowledgeable pros here to further explain ... View more

When I write the message, I use paragraphs and punctuation, however, when I click to post it, it becomes all as one paragraph. How do I fix it?. I'm on the Rich Text option, is that the problem? ... View more

As far as the card company, it is not reported on the 1099-K, regardless of it being a personal or business card. What is the annual recap statement? In any event, I declare it fully as a taxable income. I misunderstand your explanation below about how to post it in the books. Do I post every single purchase or as a total at the end of the month when the statement arrives? Reason I am asking is that the item purchased is always the same, an Amazon Gift Card, with which my client then buys the goods on Amazon.Most of the cashback out of the 2% goes to my client while I keep a portion of it which is my taxable income. So I still misunderstand how do I post it in a way that I pay taxes only on my portion. Let's say a $1K purchase made, $20 cashback given, when it's payoff time my client pays out of his bank $980 and uses the whole $20 to pay the remainder. Then in a separate transaction he will pay me my portion of that $20 cashback against an invoice that I issue to him. My client post all purchases and payoffs in his books. So if we choose the trust account methodology, how is it done in practice? ... View more

Hi John, To answer your questions: The card is a small business card by CapitalOne If I classify the purchases as COGS and the payoff as income against the costs then I will end up with more costs than income at the end of the month because of the cashback. The cashback is used every end of cycle to pay off the balance and the remainder is paid by my client directly from his bank account. So how does this workflow lines with what you suggest?, I'm confused here. With the cashback taken into account, the COGS and payoff off set each other, however the cashback is the declared taxable income. When you say 'as a business account', do you refer to how my account is setup in Quickbooks? When you say I need to 'establish trust account relationships', do you mean in the Quickbooks, in the Chart Of Accounts or elsewhere?, I misunderstand. There is no co-mingling here as this credit card is used solely 100% only for the purchases of my client. I don't know how to reconcile the excess payment, eventually they balance out because future purchases will be made against those extra payoffs. ... View more

@Rustler wrote: the date you receive the payment is the payment date, not the date of deposit and not the date the customer created the payment   income is posted when you save the invoice in accrual, in cash basis income posts as of the date payment is received.   QB is accrual accounting, it only reports on cash basis if asked So the income/revenue is recorded as of the date when the invoice is issued and saved in the books, even if the service (for which the invoice applies to) was rendered in a previous time (the previous month in my case)? If the payment arrived as check in the mail, do I record the payment date as when I collect the mail? I mean there might be a gap of some time between when it was sent to when delivered. ... View more

Regarding your last paragraph about the riskiness of the business model: The client always prepays and overpays, meaning he setup his Bill Pay to always pay off the card balance before the statement is issued and in greater amount than what will be on it. So there is no room for mistake here. This business called Payment Facilitation and is common in the industry of eCommerce In the bookkeeping workflow you suggested, how do I show that my only income is my portion of the cashback?. When client pays off the card he pays out-of-pocket less amount of what was purchased because the ongoing cashback is used as account credit, hence, to pay off the balance. So basically most of the cashback goes to my client and I am left with small part of it as my income (profit) out of this business model ... View more

I misunderstand the part of: since the investment is done and it was income you posted, do a journal entry debit investment income for the full amount of the investment, and credit the investment asset account How the investment was income if it is money going out? ... View more