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?
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?
Hi Kim Morrison,
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:
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
*Community Hub is the new name for Sage City