In My School Books you can track “Payments”, “Discounts” and “Refunds” from your student families. There is a small but important difference between these three.
- A Payment is when a family pays you money. It’s any time you receive a check, cash, PayPal or any other form of payment.
- A Discount is when you want to reduce a family’s amount owing to you, but you haven’t received any form of money.
- A Refund is when you physically give money back to a family.
It’s important to distinguish between the three for tax purposes. When you receive a payment from a family, it’s counted toward your annual income. When you issue a discount to a family, it is not income. When you run an income report in My School Books discounts are not included in that report because you did not receive any money when you issued those discounts.
When you issue a refund, money is returned to a family so your income decreases. Typically a refund is only issued in the case of over payment. For example, if a family accidentally pays you too much, and will not be taking lessons any more, you could issue a cash refund for the difference and return the excess money to them. A refund should NOT be used if you are not physically returning money (cash, check, PayPal, etc.).