Accounting for discounted gift cards in Wave

soddenart

I cant figure out how to properly record the buying of discounted gift cards for use towards business expenses. Any advice?

AaronVale

I did that a while back, I just have to remember how I did it.

First, you'll need a new asset account for the gift card. Make it a bank account so you can use it to pay for things. You'll also need an income account for the profit you're making on that trade.

Say you're paying $10 for a $20 card you would make a journal entry that credits your bank account for $10, credits your new income account for $10 and debits your gift card account for $20. Then you can just use the gift card as a payment account to pay for things.