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QuickBooks is a widely used, cloud-based/desktop accounting software, designed to help small and mid-sized businesses manage their financial health. It streamlines bookkeeping tasks by automating invoicing, expense tracking, bank reconciliation, tax preparation, and reporting. In this guide you will learn more about understanding liabilities when using QuickBooks.
When using QuickBooks, you will likely want to understand how to work with liabilities; such as gift vouchers, customer credits, or custom packages. For more information on what liabilities are and how they differ from revenue, see our help guide Understanding liability vs revenue.
If you are wanting to use gift vouchers, customer credit or new packages with your QuickBooks integration, you will need to set up liabilities in QuickBooks first. This will then allow you to complete the account mapping steps later on. There are different types of liability accounts that you may want to establish, these could include:
- Gift vouchers
- Customer credits
- New packages
This way, when a voucher is purchased or a credit issued, the liability account total increases. Then, when a voucher or credit is redeemed (either fully or partially) the liability account total goes down and the revenue is recognised in your sales reports. If a voucher or new package expires (i.e. is not used) Timely will deduct the unused value from the liability account.
Steps for adding a liability account in QuickBooks
To get started, make sure you've set up a current liability account for the various types of liabilities that exist within your business so you can sync your sales and redemptions from Timely. For more information on current liability accounts, see the following QuickBooks help guide here.
Steps to create a chart of account
Timely note: these instructions are taken from QuickBooks directly, and are subject to change. Please see their help guides for more information.
How to map to accounts in QuickBooks
Once you've got your liability accounts set up in QuickBooks, you can then map to these. To do this:
Timely note: this is where you will select the account to map to. You could chose a liability account for gift vouchers, customer credits, or new/custom packages. Make sure you have followed the steps for adding liability accounts in order to do this!