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”.
While the income totals we show on your books are accurate, the only details we show about your deposits are whatever is available on your bank statements. If you ever need to see more detail about your income, you can always refer to reports from your Invoicing or Point Of Sale system. These details don’t need to be all in one place. You can cross reference those reports with our reports in order to get the full picture. However, if you prefer to show your income details in your books, you can add those details using the Transaction Detail sheet.
If a single deposit includes multiple sources of income, create a Split. 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)