Why are all my deposits coded to an account simply called "Income"?
<This article refers to using your Transaction Detail sheet which is linked in your Dashboard.>
By default we code all deposits as income. If money hasn’t hit your bank account, we don’t call it income (for instance, outstanding invoices). But there are some instances where some deposits shouldn't be considered Income. If so, please edit the Deposit account accordingly. Examples include:
- A contribution of personal funds into the business.
- Receiving new loan, or receiving a payment on an outstanding loan. If this is the case, change the Account column to say “Loan - Name”, where the Name is the name of the lender.
- Receiving a reimbursement
- If the original expense you are being reimbursed for was written off as a business expense, the reimbursement should be coded against that expense account. For example, if you were being reimbursed for Office Supplies purchased, you would change the coding of the reimbursement deposit from “Income” to “Office Supplies”.
- If the original expense you are being reimbursed for was NOT written off as a business expense (in other words, you paid for it personally), the reimbursement should be coded to “Personal”.
By default, we code all deposits with the basic information provided by the bank statement. Feel free to add additional detail to the deposit. To add detail to a deposit that includes multiple names, create a Split (refer to the “Create A Split” section above). Examples of information you might want to add are:
Any Sales Tax Collected:
Account codings other than just “Income” (ex: Consulting Income, Software Sales Income, etc.):
Classifications (covered in this article)