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Posted by Razor on July 1, 2007, 7:42 pm
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Hello all,
I'm a pastor who receives a monthly reimbursement for business miles
traveled. I manage my personal finances in Quickbooks. My question is: How
do I account for this check in Quickbooks? I wouldn't think that setting up
an income account called "mileage" would be accurate since the check isn't
income. Suggestions?
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Posted by Paul Thomas, CPA on July 2, 2007, 8:38 am
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> I'm a pastor who receives a monthly reimbursement for business miles
> traveled. I manage my personal finances in Quickbooks. My question is: How
> do I account for this check in Quickbooks? I wouldn't think that setting
> up an income account called "mileage" would be accurate since the check
> isn't income. Suggestions?
Technically it's a contra-expense account in that you have recorded the
expenses of driving (gas, oil, repairs, tags, insurance, etc) and this is a
reimbursement or refund of those expenses.
It matters not how you record it in your books and records, but it does
matter for tax purposes.
--
Paul A. Thomas, CPA
Athens, Georgia
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Posted by Razor on July 2, 2007, 11:27 am
Please log in for more thread options <snip>
Technically it's a contra-expense account in that you have recorded the
> expenses of driving (gas, oil, repairs, tags, insurance, etc) and this is
> a reimbursement or refund of those expenses.
>
> It matters not how you record it in your books and records, but it does
> matter for tax purposes.
>
>
>
> --
> Paul A. Thomas, CPA
> Athens, Georgia
Thanks Paul,
But my question is: how do I show it in Quickbooks while still making my
books balance? I suppose I could just create an income account for mileage,
but then I have to manually deduct it every time I want an accurate income
total.
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Posted by Paul Thomas, CPA on July 2, 2007, 12:52 pm
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> But my question is: how do I show it in Quickbooks while
> still making my books balance?
Credit your income account, or a contra-expense account, and debit your
bank.
> I suppose I could just create an income account
> for mileage, but then I have to manually deduct
> it every time I want an accurate income total.
Not really. It's either income to you - or an expense reduction. The
bottom line is static regardless of what you call it or where you put the
expense reimbursement.
If you can create an "Other Income" category, place this item there.
--
Paul A. Thomas, CPA
Athens, Georgia
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