Quickbooks Recording Income to Expenses Account
Let me give an example. The church pays $2100 for campground rental fee upfront.
The members, once the camp is done, pays back the church for $2000. For a net total of -$100.
The way we have it setup in QB is we have an expenses account called "camp expenses" and all the payments received for camp are put in that expenses account.
Is it okay to do it this way? Or should we have a separate income account called "camp income"?
OR both ways are fine?
Personally, I like the way of doing the recordings this way and the reasons are because:
1. When we do a P&L report in Quickbook, it shows right away the true cost/loss to the church for camp.
2. We won't somehow accidentally consider that income towards next years budget if we ever decide not to do camp for a year.
While I like the way it's being done now, I want to double check if this was an acceptable accounting practice and/or be acceptable if the government ever needs to check our books.
NOTE: We are a small church, and the finance department is all volunteer without any accounting or financial background.