The Business of Gift Cards | Why Most Get the Accounting Wrong

Australians waste $1.9 billion a year on gift cards they never use, and there's a whole business model built around hoping you don't show up. If your business sells gift cards, there's a good chance the accounting is wrong. It's one of the most common mistakes Jase sees with his clients, and this episode gets into how the accounting should actually work so you're not paying tax before you need to. On this episode, we discuss: (00:00) Intro (00:24) How Endota Spa's Gift Card Numbers Went Viral (03:43) $1.9 Billion in Unused Gift Cards Per Year in Australia (05:23) How Gift Cards Became 40% of Endota Spa's Revenue (05:59) How Endota Earns $13.5M From Gift Cards No One Uses (07:07) Why Gift Card Sales Aren't Revenue on Your Books (08:52) The 3-Year ACCC Expiry and When to Recognise Revenue (10:50) What the Endota Sale Means for the Incoming Buyer (12:46) Swap Platforms That Turn Unused Gift Cards Into Cash (14:58) Gifta and How to Make Sure Gift Cards Actually Get Used (19:27) Why Gift Cards in Your Digital Wallet Actually Get Used (21:23) Employee Gift Cards and Fringe Benefits Tax (23:01) Game Over Check out the free resources from Inovayt here. Send us an email: hello@thenumbersgamepodcast.com.au The Numbers Game is brought to you by Future Advisory & Inovayt. Hosts:Nick ReillyJason Robinson This podcast is produced by VIDPOD. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.