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bmalysh
July 21, 2021
Question

journal entry for employee tips chart of account

  • July 21, 2021
  • 1 reply
  • 0 views

We use square, which automatically set up a liability account for tips received via credit card on square.  We pay out the tips in cash each night.  So my question is what would the journal entry be in order to show that the liability account for tips is going down?  and what would the other part of the entry be? 

1 reply

T
Tammy_H
July 21, 2021

Hi bmalysh,

 

It's fantastic to see new members reaching out in the QuickBooks Community with your questions. I know tips are a big part of many businesses. QuickBooks makes it easy to do. I can point you in the right direction.

 

This article discusses setting up the accounts, product items, paying out the amount and the journal entry involved: Share tips with your team.

 

I'm confident you'll have no trouble with this. If you do need a helping hand, I'll be here. Have a wonderful evening!

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