I need to create a custom invoice data field for my invoices.

SUGGESTED

  I am owner/operator and I charge for a tip on the invoices I send out to corporate customers.  This is not an revenue... I collect the tip value and pay it our in cash to myself.  I need to record this amount but not as an employee.  How can I do this? 

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    SUGGESTED

    Hi ,

    Thanks for reaching out with your question. In your case, since the tips are not employee earnings but rather direct payments to you as the owner/operator, you might consider creating a line item on your invoices specifically for these tips. This would allow you to track these amounts separately from your standard revenue. When recording the transaction in your accounting software, you could:

    1. Record the sale with the tip included: Just as the sale would include tips for employees, include the tip for yourself in the invoice total.
    2. Segregate the tip from the revenue: When accounting for this revenue, ensure the tip amount is segregated from the main revenue in your records, similar to how you would separate out tips meant for employees, to ensure your revenue reporting remains accurate.
    3. Transfer the tip amount to a personal account: Since this tip is for you personally, ensure you transfer this amount out of the business accounts in a way that clearly shows it's not business revenue but a personal gain.

    Please note, the treatment of such transactions can vary depending on local tax laws, and it's essential to consult with a financial advisor or accountant to ensure compliance, especially considering tax implications and how to correctly document these transactions in your financial records.

    Warm Regards,
    Erzsi