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MartaInkin
April 23, 2025
Question

How to categorise money coming in?

  • April 23, 2025
  • 1 reply
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Hello 🙂 so, every month I have a subscription which costs £700.00, which I understand is an expense. Part of this subscription is covered by a 3rd party. When the 3rd party transfers the money to me to cover their share, how do I categorise it when dealing with bank transactions? it's not an income, so a deposit as type of transaction? and then, how do I categorise it? to make sure it's not seen as an income?

    1 reply

    FishingForAnswers
    FishingForAnswers
    April 23, 2025

    @MartaInkin  If you are familiar with the Deposit function in QBO, you can use the relevant expense account in the From Account line.

     

    This will have two effects.

     

    First is that your bank account will increase by their share of the subscription cost.

     

    Second is that the relevant expense will be lowered by their share of the subscription cost.

     

    Depending on the nature of the third party, it may be more appropriate to involve an Equity account, but you'll need to provide more information on your situation to get that kind of answer.

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