Accounting for gift cards in your business

Practical business tips
Written By Zoe Scott

EPISODE 54

 

Notes

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 important to understand best practice when it comes to recording your gift card liability.

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

  • The sale of gift cards

  • Refunding

  • Giving of gift cards to clients

  • Gift cards as a form of payment

I also give clarity around tax matters and how to ensure you’re complying with ATO guidelines.

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. 

LINKS:

Register your interest in the Bookkeeping it Real Mentoring Program here.


Check out my course Bookkeeping it Real here!

 

About the
Author

Bec is a chartered accountant who worked at Australia’s big firms and banks for 15-years. Faced at a crossroads in her career, she backed herself, left her corporate job and launched Straight Up Bookkeeping. 3 years and 5 staff later, Straight Up Bookkeeping is one of Australia’s leading virtual bookkeeping businesses for creatives, with a mission to free business owners from financial stress so they can grow their empires.

 
 

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