How to account for a deposit that matches income + expense
dnkubica
Member Posts: 2
This is accounting 101, I'm sure, but I can't figure out how to ask this question to find the help article.
I earn commission monthly.
I pay a "professional fee" for an upgraded commission rate.
I also pay for other expenses incurred (i.e. mailing).
So commission - professional fee - expenses = deposit
How do I account for all this in Wave?
When I create an invoice, the total is my commission earnings (this is what I have to pay taxes on).
But then I have to account for write offs, such as mailing expenses, and my professional fee, which I would think to put on a bill. But I can assign the deposit to the bill. I'm confused how I would do this so it makes sense. Another account?
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Comments
Hey @dnkubica thanks for reaching out! It's our busiest time of year, so we apologize for the time it took for you to receive a response. If I'm understanding your scenario correctly, you're looking to record a number of expenses against an amount that you invoice your clients, is that correct? In that case, I'd recommend our guide to reimbursable expenses. Please don't hesitate if there's anything we can clarify.