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BNF Kombucha
September 3, 2024
Question

Recording Cash Back

  • September 3, 2024
  • 1 reply
  • 0 views

I redeemed credit card rewards as cash deposited into the checking account, how do I record it in QBO?

    1 reply

    JoesemM
    JoesemM
    September 3, 2024

    Good evening, @BNF Kombucha.               

     

    I appreciate you coming to the Community with your question about recording a cash back. 

     

    To record cash back rewards from a credit card as a deposit in QuickBooks Online, you can do the following:

     

    1. Click + New in the top left corner.
    2. Select Bank Deposit.
    3. Choose the bank account that received the cash back.
    4. In the Add funds to this deposit section, press the Cash Back Rewards account.
    5. Enter the amount of the cash back in the Amount field.
    6. Click Save and close.
    7. Categorize the cash back rewards.

     

    I hope this helps. If you have any questions, feel free to reach back out. Have a great day! 

    B
    BNF KombuchaAuthor
    September 3, 2024

    Thank you for your prompt reply. So what account(s) should it post to then? Is it an income or expense? I actually don't have cash back account, does it need to be that specifically coded? I'm still pretty new to accounting.

    K
    KimberlyS
    September 4, 2024

    We appreciate you getting back to this thread, BNF Kombucha. I'm here to add more details regarding recording cash-back rewards in QuickBooks Online for clarification.

     

    Please know your redeemed credit card rewards are posted in an income account. Since you don't have a cash-back account, you can create one. With this, you need to pick the appropriate account and detail type with the guidance of an accountant if you're unsure what to choose.

     

    Here's how to make an account:

     

    1. Head to the Gear icon, then Chart of accounts.
    2. Click New and enter your desired name from the Account name field.
    3. Choose the appropriate Account type and Detail type.
    4. Select the Make this a subaccount if it's a subaccount and provide the corresponding Parent account.
    5. You may enter additional account information from the Description field.
    6. Hit Save.

     

    If you don't have an accountant, you can look for one here: Find an Expert QuickBooks ProAdvisor Near You.

     

    On the other hand, consider scanning this material to help keep your books accurate and balanced by matching your QuickBooks data to your actual statements: Reconcile an Account in QuickBooks Online.

     

    We're always around and ready to assist with future concerns about recording cash-back rewards in QuickBooks Online. Kindly return to this thread and use the Reply button to notify us in the Community.

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