Customer gifts as expenses
What is the best account to post customer gifts to?
Should it be considered marketing and promotion or a type of miscellaneous expense?
Relationship marketing develops long-term client/customer relationships.
I see it as a marketing expense if the gift is of nominal value and meant to say thank you to your important clients/customers... and the intent was not to influence sales. This generally means the value must be $100 or less ... preferably not cash.
Keep in mind a possible ethical controversy ...
The gift must not be seen to create an obligation. It must also be infrequent in nature and be something that you would feel comfortable receiving if it was offered from one of your vendors.P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.