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Apples521
February 15, 2024
Question

Best way to track cash equivalent gift cards we purchase for cash-like use in QBO

  • February 15, 2024
  • 1 reply
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Our non-profit has a couple of gift cards (gas and grocery) that we purchase regularly to give to need based clients we serve.  What is the best way to set up and track the purchase and release of these gift cards?

 

I currently have a "Prepaid Gift Cards" bank account setup (with Cash on hand detail type) and the gas and grocery cards are a subaccount of that prepaid gift cards bank account.

 

Further, we have a program called "Helps" where we help individual pay for an array of daily needs (gas, clothing, food, utilities, etc).  This is a separate account in our bank and as such is set up as a bank account in QBO.  I also created a "Helps" class since its a program we run and need to track income and expenses by class.  We have a handful of other programs I've set up the same way.  My question here is- when we purchase these gas and grocery gift cards what's the entry here?  We purchase using the "Helps" debit card.  Would this be a "gift card expense" category in my Helps class and then create a separate deposit transaction to the gift card bank account I set up?  And when we issue those gift cards by writing a check from the "prepaid gas cards" subaccount, would my expense category be "gasoline assistance"?  Would I use the same "Helps" class or no class at all?

1 reply

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SirielJeaB
February 15, 2024

I'll provide the necessary information on handling gift certificates you purchase in QuickBooks Online (QBO), Apples521.

 

You'll need to create a cash account that you’ll use to record and track the balance of your gift certificates. Here's how: 

 

  1. Select + New.
  2. Choose Check or Expense depending on how you paid for the certificate.
  3. Select the vendor you got the certificate from from the Payee ▼ dropdown.
  4. Choose the account used to purchase the gift certificate from the Bank account (check) or Payment account (expense) ▼ dropdown.
  5. Fill in the Category details.
  6. Enter the amount of the gift certificate.
  7. Hit on Save.

 

Once the gift certificate is in the system, you can use it to buy products or services from the same vendor you got it from.

 

For more detailed information and processes, read this article: Record gift certificates purchased from vendors.

 

With regard to properly categorizing and accounting for the expenses, I'd recommend reaching out to your accountant. They're the ones who can guide you through this matter.

 

You can run reports QBO to determine the financial status of your business.

 

Kindly leave a comment below if have further questions about managing gift certificates along the way. I'm committed to making sure you achieve your goals in QuickBooks. Keep safe.

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