In QuickBooks, you can record and track customer training royalties by setting up an income account and using invoices. Here’s a step-by-step guide on how to book customer training royalties:
- Set Up an Income Account:
- Go to the “Lists” menu and select “Chart of Accounts.”
- Click “Account” at the bottom and choose “New” to create a new account.
- Select “Income” as the type of account and name it something like “Training Royalties.”
- Create an Invoice:
- Go to the “Customers” menu and select “Create Invoices.”
- Choose the customer or client for whom you are recording the training royalties.
- In the “Item” column, select the service or product related to the training royalties.
- Enter the amount of the royalty in the “Rate” column.
- In the “Tax” column, select the appropriate tax code if applicable.
- Save the invoice.
- Record Payment of Royalties:
- After issuing the invoice, receive payment for the royalties from your customer.
- Go to the “Customers” menu and select “Receive Payments.”
- Choose the customer and locate the invoice you created for the royalties.
- Enter the payment amount and payment method.
- Click “Save.”
- Track Royalties:
- You can track the royalties you’ve received and other relevant financial information in QuickBooks’ various reports. Go to the “Reports” menu and explore reports such as the Profit and Loss statement, Sales by Customer Detail, or Sales by Product/Service Detail to monitor your royalty income.
- 1099 Reporting (if applicable):
- If you need to issue IRS Form 1099 to the recipient of the training royalties, make sure you have their Tax ID or Social Security Number on record.
- QuickBooks can help you generate 1099 forms at the end of the year for reporting, if needed.
Remember to consult with a certified accountant or tax professional to ensure that you are handling royalties, taxes, and financial matters in accordance with local laws and regulations. Additionally, QuickBooks may have undergone updates or changes since my last knowledge update in September 2021, so it’s a good idea to refer to the latest QuickBooks documentation or reach out to their support team if you have any questions or need assistance with specific features or issues.
A proficient bookkeeper for small business can use QuickBooks to maintain accurate financial records, track expenses, and ensure compliance with tax regulations.