Credit card cashback is an income that is received as a portion of the purchases made via the card. This income is provided by the credit card office to its customers as an advertising offer. Cash backs are considered as receipts so, you need to record them in the books of accounts. As a result of this, the need for identifying how to enter credit card cash back rewards in QuickBooks can emerge. The Banking tab on the homepage of the QB software lets the users enter these rewards. Through this option, all the income-related processes can easily take place. Alternatively, if you are working on the Desktop version, you may opt for the Chart of Accounts tab for recording the credit cashback rewards.
Once you receive the credit card cash back rewards, you may want to record them in your QuickBooks account for any reference in the future. For all such rewards, you need to go to the Banking button. After tapping on it, you will have to click on Credit Card Charges. Then you are required to enter the name in the field of Purchased Type. After that, the amount that you had created is to be selected.
These instructions will lead you on how to enter cash back rewards in QuickBooks:
In QuickBooks Desktop, users can enter the cashback rewards with the help of the Chart of Accounts/COA tab. This chart shows all the accounts of your organization that have been added to the software. The balance in each one of them can be reflected here. So, when you enter the rewards, they will also be reflected as a balance.
After opening the QBDT window, the Lists option is to be clicked. Then head towards the COA button. Next, you need to tap on the Account pull-down menu and opt for New to create the balance for rewards.
To see how to enter credit card cash back rewards in QuickBooks Desktop, keep following these steps:
After you have created an income account, continue reading the steps for entering the cashback rewards:
In the Online version of the QuickBooks software, the credit card cashback rewards can be recorded. via the Credit Card Credit button. The credits generated from your card can be added through it. The rewards can be considered a part of these credits. Tap on the Create option on the QBO homepage. Then choose this button. Now, you need to pick a payee, and after that include the Credit Card Account. Further, look for the section of Account Details.
Understanding how to enter credit card cash back in QuickBooks Online should not seem difficult with these steps. While you enter the cashback, see to it that the amount is correct, or else you may notice financial errors in the balance.
On the Whole
Being considered as an income, it becomes important to record the credit card cashback reward. The QuickBooks software can be apt for entering them. The blog helped you to receive knowledge about how to enter cash back rewards in QuickBooks and its versions. For more assistance, while implementing the methods, connect with us through the comment box.