Track Tips Right

Do you collect tips or gratuities? Those need to be tracked too. Whether you run a salon, cleaning crew, or service-based side hustle, tips count as income—and the IRS expects them to be reported. Ignoring tips can cause tax confusion and make your books look incomplete.

With QuickBooks, you can log tips as part of your daily income or separately if you want to see what portion of revenue they represent. Categorizing them correctly helps you get the full picture of your business income and stay compliant with tax reporting.

A Chandler CPA (like us) can help you make sure tip income is treated right—especially if you’re growing and moving toward payroll or regular distributions. It’s one of the things we handle through Monthly Accounting Services, keeping your books tidy and tax-ready.

Questions? Call us at 480 747 3935 or visit our Monthly Accounting Services page, too!