Hello all,
I'm a pastor who receives a monthly reimbursement for business miles traveled. I manage my personal finances in Quickbooks. My question is: How do I account for this check in Quickbooks? I wouldn't think that setting up an income account called "mileage" would be accurate since the check isn't income. Suggestions?
"Razor" wrote
Technically it's a contra-expense account in that you have recorded the expenses of driving (gas, oil, repairs, tags, insurance, etc) and this is a reimbursement or refund of those expenses.
It matters not how you record it in your books and records, but it does matter for tax purposes.
Technically it's a contra-expense account in that you have recorded the
Thanks Paul,
But my question is: how do I show it in Quickbooks while still making my books balance? I suppose I could just create an income account for mileage, but then I have to manually deduct it every time I want an accurate income total.
"Razor" wrote
Credit your income account, or a contra-expense account, and debit your bank.
Not really. It's either income to you - or an expense reduction. The bottom line is static regardless of what you call it or where you put the expense reimbursement.
If you can create an "Other Income" category, place this item there.
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