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Dec 22, 2023 5:59 PM UTC
Question

How do I log and track CASH tips to others as an expense? I am in the aviation business, so I often find myself tipping airport line guys, cab drivers, etc.

would I go into my chart of accounts and create a vendor called "MISC CASH TIPS"?  clearly I would not want to create a different vendor for every $10 or $20 cash tip spent.

1 reply

Dec 22, 2023 7:52 PM UTC

Hello there.

 

You're in the proper process of tracking cash tips as an expense. Adding a single vendor called Misc Cash Tips for tip expenses is an excellent way of efficiently tracking other expenses without creating different vendors for every tip you give. However, you'll need to consult your accountant to track your business expenses, including cash tips, to ensure accurate financial records.

 

You may also want to consider tracking tips you received from your customers in QuickBooks Online.

 

Please keep us updated about your concern about creating a single vendor for every tip expense you pay to multiple vendors. I'd gladly assist you anytime.