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NeutronTech
10-11-2010, 03:10 PM
I had a customer the other day throw on an extra $10 to the total bill for a tip. He paid with a check, so when I applied it to his account, I now show him with a credit of $10. How should I handle this from an accounting standpoint? If I just enter in the total of the bill, it will throw off my banking because the deposit will be off by $10. If I enter the total, including tip, my billing will be off by $10. Thoughts?

MrUnknown
10-11-2010, 04:53 PM
Split the transaction and put the $10 in an account for tips received.

Normally, I just increase their bill by X amount and act like I billed them that much originally.

rhinetech
10-11-2010, 05:02 PM
Normally, I just increase their bill by X amount and act like I billed them that much originally.

This is what i do... much easier, and technically going to the same place (me/my company).

PcTek9
10-11-2010, 05:25 PM
Tips go at a higher tax rate than earned income? I don't know.
The smart thing to do with accounting (double entry system) is to get the latest form
you are going to report on, like a partnership has certain things they want to know, then
set up those accounts in your accounting software.
ask an accountant, and do it the right way the first time.

NeutronTech
10-11-2010, 06:03 PM
Okay, thanks guys. My accounting is a nightmare anyways. I'm just going to hire an accountant to set me up and fix what I have already. I should have done it to begin with, but I didn't really have the money at the time.