Starting this month, in QuickBooks Online, your clients can add a tip when they pay an invoice, and you will get an additional field to record tips of 5%, 10%, 15% or a custom dollar amount on sales receipts.
This is a new feature that we think will be really useful for businesses, so I wanted to give you a quick overview of how it works.
Here’s how it works: When you turn on tips in your form settings, it adds a Tips field to all your Invoice and Sales Receipt forms. If you want to record tips on sales receipts, you can just turn on tips in your form settings.
Your clients will then have the option to add a tip when they pay an invoice. You also can set a default tip percentage in your form settings, which will apply to all invoices unless the customer specifies a different tip amount.
Turn tips on for sales forms
You will see a Tips field on all your invoices and sales receipts.
To turn tips on:
1. Select Settings, then Account and settings
2. Select Sales
3. In Sales form content, select Edit
4. Turn Tips (Gratuity) on
5. In the “Who’s Receiving These Tips?” window, select an option
- My Team: Select if you use tips to pay your employees or others; this creates a liabilities account for tips
- Just me: Select if you only pay tips to yourself; this creates an income account for tips
6. Select Update.
7. Select Save, then Done
When a payment with a tip is received, the amount updates with the Tip box below the Total. Payments will be in the full amount of the invoice + tip.
Turn tips off for sales forms
To turn tips off:
- Select Settings, then Account and settings
- Select Sales
- In Sales form content, select Edit
- Turn Tips (Gratuity) off
- Select Save, then Done
If you are using our Automated Sales Receipts feature, tips will automatically be included on sales receipts. And that’s it. A new way to get paid in QuickBooks Online.
Note: Sales receipts and Invoice tips are not connected to payroll. If your employer uses QBO Payroll or any other payroll software, they will still need to report the employee tips.
Liz Scott is a multi-business entrepreneur working to bring together technology and accountants through her business, Liz Scott Consulting. A member of Intuit Trainer/Writer Network, she authored and taught Master level courses, including Advisory Guides and Consulting Tools for Accountants. In addition to Liz Scott Consulting, she also owns Accounting Lifeline, a firm to serve small businesses with their financial needs. Liz is a co-host of the “Appy Hour,” which helps other accountants learn about the different tools and apps for small business needs. Holding a high passion for real estate investment, she owns properties throughout Oklahoma.
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