Ever needed to give a customer a refund … but then got to your Quickbooks software and had no idea how to account for it??
Honestly, we would be impressed if you got it right on the first try – refunds come in all shapes and sizes, and can get tricky fast:
How are you processing the refund? Cash, check, or credit card? (They’re all a little different!)
Are you going to give store credit instead of a monetary refund?
Will it be a full refund or a partial refund?
Did you collect sales tax for the refunded item(s)?
And if you’re an e-commerce business and tracking inventory, will you re-add the returned product to your inventory? Or is the refunded item defective?
See what I mean? Depending on your business – and the transaction type – it can be entered in several different ways.
Thankfully, there’s a good video I found from Quickbooks that can help you figure out all of those nuances (and it also links to a few more related videos to help with the more complicated ones!)
So feel free to check this video out to help you DIY your refunds correctly – or, if you want someone else to just take care of these annoying financial things like this for you and ensure it is correctly recorded – let us know!
We handle this kind of stuff all the time for our clients and would love to help you with this, too!Resource: https://www.youtube.com/watch?v=8n7a5Xnc9YM&t=1s
Kerry Postel – Founder CEO Principal
Abacus Business Solutions
Has Higher National Diploma in Business and Finance, Certified in QuickBooks, Member of American Institute of Bookkeepers, and over 20 years of bookkeeping experience including construction, travel, restaurants, events management, and other various professional services.
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