Am I correct in assuming you really can’t fund a “tip” liability account when receiving bank deposits from credit card service because it’s not an income account; which however, can be easily accomplished with an income account to liability GL entry. But, doesn’t fact that the company receives the tips as income artificially inflate the overall income profile of the company? Is there any way to have a true pass through of credit card tips? In our case, the average nightly tip amount for all employees is over $250 which equates to an inflated income of nearly $100K a year. Enough to seriously impact EBITDA and ROI on a company generating a K-1 taxable $100K - $200K a year.
