Used Gift Card for Expenses
bramon
Member Posts: 4
I received a 100 dollar gift card from Amazon for signing up for their Amazon Prime Credit Card. I used the 100 dollars to purchase products to be resold and have received payments(income) for those sales. Do I treat the sales as 100% profit or should I add line item expenses (Cogs) manually to my business checking account? I could probably download the receipts from Amazon and upload the receipts to Wave. What would be the best practice for this scenario?
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@bramon,
You would recognize only the income through sales and no expense. This is because you had a credit for which there is no cost to you.
That makes sense. Thank you Mikeg. I will definitely look into the company. Would you happen to have any reference guides on how to implement the profit first system into Wave? I found this guide for quick books linked down below. I would like to implement something similar in Wave. Any help would be much appreciated. Thanks in advance.
You would just set up your chart of accounts in a similar way. However, the process for adding accounts is different in Wave than Quickbooks. I'm sure there are some help guides available. Once you have your accounts set up, you can attach your bank so that is imports transactions automatically for each account. From there you would just categorize transfers between accounts. Best of luck!
Discovered Relay Bank that lets you create subaccounts perfect for setting up accounts for the profit first system. This bank works with the Plaid integration. So, thankfully I was able to find the bank listed in Wave's available bank connections.