Cash Back Rewards

BernieBBernieB Member Posts: 4

How should I handle cash back rewards from the credit card I use for my business? The cash back reward gets automatically applied to my balance, reducing what I owe. I don't want to chart it as Income. Should I create a new chart of account in the Assets or Equity section specifically for the cash back reward? Any other suggestions?

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Comments

  • MikegMikeg Member Posts: 132 ✭✭

    The IRS views cash back rewards as a reduction in expense associate with the purchase.
    Mike G, CPA

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