Refunds, Credits, and Sales Tax, oh my!

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