How to Record Cash Back Rewards in QuickBooks Desktop

It is a common practice for retailers to provide incentives to repeat customers, depending on their spending capacity and purchasing patterns. Also termed as a Customer Loyalty Program or QuickBooks for Rewards Program, this practice of retailers can have time and again proved to be a very impactful and efficient tool to maintain and expand the client base, significantly. Here is a brief intro about the Customer Loyalty programs for rewarding customers. Learn how to enter cash-back rewards (credit card, coupons) in QuickBooks Desktop.

Customer Reward Programs

A customer loyalty program is an approach to reward the best clients. It is possible to select a plethora of methods for such rewards however, every reward should trigger an adjoining sale. The basic goal of this reward is to felicitate the best customers or convince every customer to get back to the store and buy one more time. Often a customer reward does not reflect in the account.

Steps to Record Cash Back Rewards in QuickBooks Desktop

In QuickBooks Desktop (US version), credit card cash-back rewards count as business income.

Step 1: Create an Income Account

• Go to the Lists menu and select Chart of Accounts.
• Click the Account drop-down and choose New.
• Select Income as the account type, then click Continue.
• Enter the account name (e.g., “Cash Back Rewards”) and details.
• Click Save & Close.

Step 2: To Record the Cash-back

• Go to the Banking menu and select Enter Credit Card Charges.
• Choose Refund/Credit.
• Enter the vendor name in Purchased From.
• Use the income account you created and enter the amount.
• Click Save & Close.

Read More: How to Record Vendor Refund In QuickBooks Desktop

Step 3: Track Cashback rewards by making a Bank Deposit

Setting up Rewards

• In the Customer menu, open the Rewards Manager
• In the Rewards Program section, choose Turn Tracking On
• Choose yes to validate
• In the Reward Setup section, add details for the following:
  • Reward Amount- The Reward can be received by the customer either in the form of a discount or cut-off in dollars.
  • Purchase Threshold- The minimum amount of purchase a customer must make to be eligible for a reward
  • Reward Expiration- Determines how long the reward is valid for the customer
  • Purchase Tracking Period- The tenure during which a sale needs to be conducted to be qualified for a reward.
• Click Save, and the specific Reward Setup Changed box will have an overview of the entire rewards program.
• Click Finish

Make clients’ Rewards eligible

• In the Customer menu, select the Customer List
• Highlight the specific customer and choose Edit on the upper right side
• In the Rewards section, click the Rewards Member box
• Select Save.

Read More: How to Record a Customer Credit Card Refund in QuickBooks

As per business experts, tracking customer sales in QuickBooks and rewarding them is indeed the best move to rise to the pinnacle of success and be on top in this competitive era. However, to do so, you need the supervision of a market professional who is adept at tracking customer sales via QuickBooks. For any help related to tracking customers in QuickBooks for the rewards program, you can connect with experts via live chat.