Accounting for gift cards in your business

Straight Up Small Business

Today I’m bringing you a short and sharp episode on gift card accounting, a process that many business owners either find confusing or aren’t exactly sure how to tackle.

Whether you only sell one gift card every quarter or you’re a retailer selling a large number of gift cards regularly, it’s helpful to understand best practice when it comes to recording your gift cards in your business.

I run through these four different scenarios and the best way to approach them:

• The sale of gift cards
• Exchanging goods for a gift card
• Giving gift cards as gifts
• Gift cards as a form of payment

While I aim to give you a general understanding of the different processes for gift card accounting, I also encourage you to seek guidance from your tax accountant or bookkeeper for any specific situations you may come across.

I hope today’s episode prompts some extra thinking about your systems and how to avoid making mistakes when accounting for gift cards.

Where to Find Bec:

• Website:https://straightupbookkeeping.com.au/
• Instagram: @straightup_bookkeeping
• Facebook: @straightupbookkeeping

LinkedIn: @straight-up-bookkeeping