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accountanttobe
May 31, 2024
Question

Pass through fund are revenue or not ?

  • May 31, 2024
  • 1 reply
  • 0 views

Hi, I want to understand how to report income, revenue based on my business scenario.

 

Scenario:

Person A bought something for Person B for lets say $100 and charges $5 as service fee

However Person B is paying through my app as credit card payment of 105 + $2 app commission so total $107

The only profit for my business is $2, however $105 goes to Person A through us. 

 

Question

is the whole $107 considered revenue ? or only $2 commission for app considered revenue?  , whats the right way to report these incomes. I am based out of Canada. Thanks for guidance. 

1 reply

T
Trish_T
May 31, 2024

Hello accountanttobe, 

 

It's a pleasure to see you in Community. Welcome! It's essential that your transactions are recorded accurately in QuickBooks, to ensure they're aligned with government guidelines.  I recommend speaking with an accounting professional for their expertise and best course of action. If you don't have an accountant, we can help you locate a ProAdvisor in your local area. 

 

If you have any other questions, feel free to reach back out. We would be glad to help!

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