I use Quickbooks for a GP practice. Some GPs do extra, private work outside of the practice but are paid via the practice bank account. So, their private income is deposited into the practice account but is then immediately paid back out to their personal bank account.
I have been depositing the money into an income account, "GP Private", and then writing a check FROM the SAME income account so that the balance is netted back to zero. Is this good practice?
Flip-side question: if I write a check from an expense account, but am subsequently refunded, can i make a deposit back INTO the SAME expense account rather than deposit back into a separate Income type account ?
This is not GP's income so i do not think you should record it as income. Once the private income is deposited in the practice account it becomes a liability to the practice since they have to give it back. I think you could treat it as a current liability i.e debit the bank account and credit the money owed to GPs as a loan or something (GP Private). So when you are writing the check its like paying back a creditor. So that makes everything easy.
