Write Off Refunds?

[Waxman]

Do you keep track of refunds you give and write them off annually?

Thanks!

 

[pitzerwm]

You pay taxes on the net. If you accounted for the money coming in, then you need to keep tract of the outflow.

 

[Greg Pack]

I report it under "other business expenses"

 

[Ghetto Wash]

I take it off the top line before expenses as an adjustment to income. "returns and allowances" I think it is called.

 

[Bill Manke]

How much are you talking about. I don't get enough returns to justify it.

 

[Ghetto Wash]

How much are you talking about. I don't get enough returns to justify it.

I run about 1/20th of one percent or $50 out of every $100,000 of income. Not a lot, but it adds up and I don't want to pay taxes on it.

 

[pitzerwm]

Take what you can, before long you won't be getting anything.

 

[gsgriffin]

Are we talking about a cash refund to a customer? Curios, but under what circumstance is this given? I avoid it like the plague. I would rather give 3 free washes than one car wash refund. 97% of my customers take a one car wash code for their next wash (always make a code for the top wash, no matter what wash they puchased). Sometimes I have to give two free washes if te circumstance warrants it.

I run a two bay automatic, unattended, and my complaints are relatively few. Anyone who calls me with a car wash issue gets a free wash. That way I know they will come back.

Griffin

 

[Ghetto Wash]

Are we talking about a cash refund to a customer? Curios, but under what circumstance is this given?

I'm only self serve so it is cash. If someone leaves a note and lost money, I call them and get their address and mail them a refund. If I'm there and refund $ for whatever reason, I just make a note to myself and throw it in my receipt file and pull it out when I do my monthly statements. Same thing if I throw some quarters in a machine for a customer. If I didn't subtract it later, I would count it as income when I emptied the quarters. It all adds up to $50 per $100,000 for me.

 

[ScottV]

I keep track of all of my refunds and they are subtracted from the gross sales. I have 3 sites, 5 IBA's and 9 SS bays. Anyone that leaves a message, gets a return call. I normally give them a free wash (top package) as I can do it over the phone. I carry a list of wash codes in my wallet, for immediate problem resolution.

If I mail someone a cash refund, I also include an air freshener in the envelope along with a pre printed form from that wash site apologizing for the problem and thanking them for their business.