Question

Separating out the tip from restaurant receipts??

Forum|Forum|7 years ago
April 30, 2019
2 replies
13 views

How do you input a restaurant receipt with tip, since it doesn't look like you can make up a category for tips?

QuickBooks Self-Employed

Level 10

I can help you record the restaurant receipt and tip, tealscuisine.

You can use the Meals and entertainment to record it. Since we're unable to create a category for tips, you can record it as a personal expense and put a reminder/notes on the Notes field.

Also, I'd suggest reaching out to your accountant to verify what's the best category to use for these transactions.

You can always reach out to us here if you have other questions. Have a wonderful day!

N

NewToBookkeeping2021

What would the tax code be?

A

Alex M

Level 5

Hello NewToBookkeeping2021,

Understanding which sales tax codes to use and what each are for is a great way to make sure your books as well as sales tax filings are correct. I can help point you in the right direction.

There are three tax codes which will calculate no tax on your line item: Out of Scope, Zero-rated and Exempt. Here is a list of default sales tax codes available in QuickBooks and how they are taxable. This may point you towards which code to use. Another resource you can check is with the CRA website. Here is a link to their site which provides details about taxes for businesses.

Another solution would be to ask your accountant for guidance. Their knowledge of accounting and business practices will be able to provide you the best solution. If you want to invite your accountant to your books, you can navigate to the My Accountant tab in the left menu, then enter their contact info. If you would like to find an accounting professional with QuickBooks experience near you, you can select the Find a pro to help.

If you have any further questions, feel free to reach out here.

R

Rochelley

Level 2

Just add another line, use the same expense account as was used for the meal and write 'Tip' into the description for your own reporting purposes. Tips are part of your overall restaurant expense. If it is a valid 'Meals and Entertainment' expense, at tax time you will only be able to claim 50% of the overall amount anyways. But there's no need to put the Tip to a 'personal' expense if you deem it to be a valid business expense. The criteria is that you are entertaining vendors or clients, and you have a reasonable expectation of profit as a result of the meeting. The same could be said of travel expenses.

Sign up

Login with SSO

Let's get you signed in

Login with SSO