How to Enter Credit Card Cash Back Rewards in Quickbooks from Kaitlyn Dever's blog

If you've recently obtained a new credit card, you're probably loving your cashback rewards, but are unsure How to Enter Credit Card Cash Back Rewards in Quickbooks.

Do not be worried; you have arrived at the correct location. We'll start at the beginning, with the definition of credit card cashback benefit. Cashback incentives from a new credit card are an income received as a proportion of expenses incurred or purchases made with the card. Credit card firms typically provide this as a promotional offer to their customers.

Because they are receipts, they are now frequently recorded in the books as other income. However, they are occasionally reported as adjustments/discounts to purchases rather than income. As a result of the conversation, it's clear that you'll have to select between two alternatives for recording cash back incentives in your QuickBooks accounting software:

• By balancing the expense or purchases, it can be shown as an adjustment.

• I'm going to put it in a new account for other income.

How to Enter Credit Card Cash Back Rewards in Quickbooks

We'll go into the second alternative in depth because the first will prevent us from seeing the whole picture of the analysis. You can use the QuickBooks Chart of Accounts' normal other income account. However, you can create a fresh other income account particularly for this purpose:

How to Make a Separate Account for Other Income

To create another revenue account to offset the spending or purchase account, follow the steps below in the same order:

Step 1:After you've opened QuickBooks, go to the left panel of the menu and select the accounting tab. You must proceed to the Chart of Accounts after clicking on the accounting tab.

Step 2:After you've completed the first step, go to the 'New' page and select 'Income' in the Account type area.

Step 3:Now go to the detail type and fill in the information as needed; if you're not sure what to put in, talk to your accountant.

Step 4:Finally, in the name field, type the name of the account you wish to create, then click Save and Close. Your second income account will be created.

Create a Credit Card Credit for Cashback Rewards

Step 1: Begin by selecting 'Credit card credit' from the create option at the top of the QuickBooks page.

Step 2: Now choose a payee and provide the correct credit card account number in this step.

Step 3: Once you've completed the first two steps, go to the account details area and under the Account column, input the other income account number that you generated previously.

Step 4. To complete the recording procedure, simply input the cashback account and click save and close.