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September 17, 2023
Question

Excluding Refunds

  • September 17, 2023
  • 1 reply
  • 0 views

If I receive a refund, do I exclude both the income and expense transactions? Is there a better way of doing this? I've also excluded a partial refund from a bigger purchase, but it doesn't lower my business spending amount. Should I not exclude it and leave it as income? Thank you.

1 reply

Nicole_N
September 17, 2023

Hi there, zj_. I appreciate you getting in touch regarding refund-related concerns and their impact on your income and expenses. Let me share some insights about this.

 

When receiving a refund, you can exclude it while retaining the income and expense transactions since categorizing refunds in QuickBooks Self-Employed is not feasible. Also, I recommend seeking expert advice from an accountant to ensure the accuracy of your books. If you are not affiliated with one, we can help you find a ProAdvisor here.
 

I've added these articles which provide an overview of how to classify transactions and how they show up on the financial reports:

 

 

Please let me know if you have any additional concerns in the comment section below. I'll be here to help. Have a great day!