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Community Contributor *
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How to account for using Square

Hi, we recently started using Square to process cc payments in January. I had set up Square as a customer and when syncing to my bank i would just mark the deposits as sales. Obviously i am an idiot and just not realizing that's wrong. Not only is it the incorrect way to do it but now i am booking net amount after fees have been collected so my actual sales numbers are not reflective to our in-store sales numbers. And also i am not able to see how much was paid in fees. My question is two part. Can i go pull up each transaction booked this way and undo it. And if i can after i undo what is the proper way to set up square in order to account for actual sales number while also booking the merchant fees. My bank is connected to qb online so it shows each daily deposit net amount meaning the fee has already been charged from my total sales. Thanks guys 

Best answer a month ago

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Community Contributor *

Re: How to account for using Square

Also, i just noticed for the first 10 days of . Jan when we were using square as a pos with actual inventory items, those are showing via the quickbooks integration app as individual transactions and i can see exactly how it would be book correctly. My issues appears to be since we ar using square soley as a payment processor it will only show daily batch totals after fees. Just as any payment merchant account would. The only thing i can think of is to make a sales receipt for each single day and name it "credit card sales" then add the totals for that day then add the fee as a negative then add the batch deposit. wish there is an easier way that i cant think of

16 Comments
QuickBooks Team

Re: How to account for using Square

Welcome and thanks for getting in touch with us, @jaytronixx,

 

I can share some information on how to correct your Square transactions.

 

Great news! You can now batch Undo transactions that were incorrectly added in QuickBooks Online. To do that, follow the steps below:

 

1. Go to the Banking tab from the navigation panel.

2. Click to highlight the correct account you need to work on.

3. Proceed to the In QuickBooks tab.

4. Place a check mark in the box(es) for the transactions you'd like to undo.

5. Click the Undo button that appears at the top of the list.

 

 

You can see these items back in the For Review tab where you can select and assign the correct Category or account. Here's your guide to edit your banking transactions:

  1. Go to the For Review tab.
  2. Click the deposit to expand the details.
  3. Select the Add or Transfer option for you to update the category of the transaction.
  4. Click Add or Transfer once done.

 

Additionally, to change your Square mapping settings after the import, please follow the steps below"

  1. Select Edit next to Defaults for Unmatched Items to update the defaults for income accountand sales tax code.
  2. Log in to your QBO company, then select My Apps.
  3. Hit Settings under Sync with Square.
  4. Choose Edit next to Basic Settings to update Bank accountExpense account, and Payment method.
  5. Click Save changes.

To know more about syncing your Square transactions into QuickBooks, please check out this article: Sync with Square Hub

 

That should get you on the right track, @jaytronixx. Please update me on how this goes. I want to make sure everything's working fine on your end. Have a good one!

Community Contributor *

Re: How to account for using Square

thanks for the awesome tips. I should have asked this question long before. To recap what ive done.

 

1. Found all square deposits from previous month and clicked on undo now they are back in review

 

2. I synced my square app selected my bank as the deposit account 

 

3. selected square fees to account the fees

 

4. After that it asked me if I wanted to import previous transactions I selected no as they were already in review now I dont know how to properly add the old transactions as they are already net after fees.

 

looking forward to your advice thanks 

Community Contributor *

Re: How to account for using Square

thanks for the awesome tip not sure if my first post didn't show up. so I undid all the square transactions.

 

Then I synced square app 

selected my bank as the deposit account 

selected square fees as expense account 

 

I did not import as not to create double transactions 

now when I go tot he old transactions that are in review how do I account for the fees. I can book them as "square income" but the totals are net after fees. thanks so much again 

QuickBooks Team

Re: How to account for using Square

I can help you get around with your concern, Jaytronixx.

 

First, let's receive the invoice payments normally, then deposit it to the Undeposited Funds. From there, you can deduct the fees and categorize them. Once done, you can match the payment to the downloaded deposit.

 

Here's how you to receive the invoice payment:

  1. Click the Plus sign (+) icon, then choose Receive Payment.
  2. Choose the customer, then the invoice.
  3. Enter the amount received.
  4. Click the Deposit to drop-down arrow, then choose Undeposited Funds.
  5. Click Save and close.

Then, deposit the payment and add a line item for the fee. Here's how:

  1. Click the Plus sign (+) icon, then choose Bank Deposit.
  2. Choose the payment.
  3. Under Add funds to this deposit, add the customer, then choose an expense account for the fee.
  4. Enter the fee as a negative amount.
  5. Click the Account drop-down arrow, then choose the bank account.
  6. Click Save and new or Save and close.

Please check the screenshot as your reference.

 

 

Lastly, match the payment to the downloaded deposit.

 

If you need more help, you can always get back to this thread. Have a good one! 

Community Contributor *

Re: How to account for using Square

Hi 

 

the issue is the deposit from square to my bank is a total daily batch of sales not individual invoices we are using square only to process cc payments with no invoice attached thanks 

Community Contributor *

Re: How to account for using Square

Also, i figured i can make the "customer" store cc sales then add it that way but my second issue is the amount of the deposit already has the fees deducted 

QuickBooks Team

Re: How to account for using Square

I appreciate you coming back to us for additional support, @jaytronixx.

 

Allow me to join this thread and help you more with your Square transactions concern.

 

To match the total daily batch sales from Square, you have to enter the transactions as Sales Receipt and deposit them to Undeposited Funds account. Next, make a single deposit and select the sales receipts. At the bottom of the Deposit window, you can add a line item for the fee.

 

Here's how to create a sales receipt:

  1. Click the Plus icon.
  2. Choose Sales Receipt.
  3. On the Deposit to field, select Undeposited Funds.
  4. Enter the necessary information.
  5. Click Save.

1.PNG

Here's how to make a single deposit and add a line item for the fee:

  1. Click the Plus icon.
  2. Choose Bank Deposit.
  3. Select the sales receipts you created.
  4. On the Add funds to this deposit section, add a line for the fee amount (negative amount).
  5. Click Save and new or Save and close.

2.PNG

After successfully recording the transactions in QBO, you should be able to match it to the downloaded Square deposit.

 

I'm still here to help you more if there's anything else you need. Just drop a comment below. Wishing you all the best!

Community Contributor *

Re: How to account for using Square

hi thanks for this great information. When creating the sales receipt i have to do one for each daily batch, or one for every single cc transaction from square ? thanks 

Highlighted
QuickBooks Team

Re: How to account for using Square

Hello there, jaytronixx.

 

Thanks for getting back. Allow me to bring clarifications to your question about handling Square transactions.

 

If the transactions is under the same customer, you can create one sales receipt for each daily batch. However, it's on a different customers, you'll need to create a separate sales receipt for each transaction from square.

 

I'm always around if you have follow-up questions about this. Just make sure to leave a comment below and I'll get back to you.

Community Contributor *

Re: How to account for using Square

Hi so as far as customers we have a bunch of customers daily but we process them on our repair software. We import the daily batches of cc sales to QB. 

Community Contributor *

Re: How to account for using Square

We check out customers cash and or credit via our POS software. We only use square to process credit card payments. So we do not track individual sales via square. Rather what happens is the total batch processed via square minus the fees is deposited into our bank. 

Community Contributor *

Re: How to account for using Square

Also, i just noticed for the first 10 days of . Jan when we were using square as a pos with actual inventory items, those are showing via the quickbooks integration app as individual transactions and i can see exactly how it would be book correctly. My issues appears to be since we ar using square soley as a payment processor it will only show daily batch totals after fees. Just as any payment merchant account would. The only thing i can think of is to make a sales receipt for each single day and name it "credit card sales" then add the totals for that day then add the fee as a negative then add the batch deposit. wish there is an easier way that i cant think of

Community Contributor *

Re: How to account for using Square

Alright so I think with the amazing help ive received I now know what to do

 

1. Undo all batch deposits that were booked wrong.

2. Create a sales receipt for the total of that day in cc sales. Make the customer "square"

3. Open square reports to view daily cc sales breakdown 

4. Transfer sales receipt to undeposited funds

5. Create deposit, the add line item at the bottom with fees amount (from square report) as negative amount 

6. Assign customer as square and book it as "square fees"

7. Save, the go to the downloaded bank transactions and match the.

 

thank you to everyone who inputed you have been a great help. 

 

QuickBooks Team

Re: How to account for using Square

Thanks for reaching back out to us, @jaytronixx.

 

Allow me to step into this conversation and provide you with more instruction to get you pointed to the right track.

 

The solution that you have is actually the easiest way to record your transaction correctly in QuickBooks Online. You'll need to create the sales receipt in batch, and have the payments to be deposited under the Undeposited Funds account. Once done, you can make a batch bank deposit, then deduct a negative amount for the processing fee. 

 

To record a bank service charge as a negative amount, you may follow these steps below:

 

  1. Choose the Plus (+) icon and then select Receive Payments.
  2. After entering all the payment information, place a check next to the invoice you would like the payment to be applied to.
  3. Select Undeposited funds as the deposit to account.
  4. Choose Save to record the transaction.
  5. Select the Plus (+) icon and then choose Bank Deposits.
  6. You should see the payment you entered in the Select Existing Payments section at the top.
  7. Place a check-mark to select the payment you want to deposit.
  8. From the Add other funds to this deposit section, enter the amount of the bank service fee charged to you by the credit card company as a negative amount.
  9. From the Account section, select the Expense account you usually use in tracking bank fees.
  10. Verify that the deposit amount is correct and Save to record the transaction.

Here's a good article that you can read through for more details about this process: Enter a bank service fee while using a third-party merchant service.

 

These resources should get you covered today.

 

Fill me in if you have any other concern dealing with recording sales transactions in QuickBooks. I'm always available to help. Have a happy weekend!

Community Contributor *

Re: How to account for using Square

Hi thanks for the additional info it working how it should now. The only issue now is i had downloaded the square transactions when i had the square app connected now they are double reporting the fist couple days as all individual square transactions 

QuickBooks Team

Re: How to account for using Square

Hello there, jaytronixx.

 

You can delete all your downloaded square transactions that are showing as duplicates.

 

Here's how: 

  1. Go to Accounting, then choose Chart of Accounts.
  2. Look for your Square account and click View register.
  3. Select the downloaded transactions that are showing as duplicates.
  4. Click Delete.

Once done, the transactions that will only show are those that you've created manually. 

 

Let me know if you need more help with your square app. I'll be right here to help anytime.