Square & Best Way

Hello there!

Let me help you record Square payments in QuickBooks Online (QBO).

The best way to record payments from Square is to make a bank deposit and add the fee as a negative number. Here's how:

1. Click + New, then select Bank Deposit.
2. From the Account drop-down, choose the account you want to put the money into.
3. Go to the Add funds to this deposit section. Then, enter the name of the customer and other payment information.
4. Enter the charge as a second line item.
5. Choose who the fee was from (the bank charging you).
6. Select Bank Charges from the Account drop-down.
7. Enter the amount fee as a negative number. 
8. Review the deposit total with the bank fee.
9. Click Save and close.

For the lump sum, I recommend seeking help from your accountant. They can guide you on how to record the lump sum from your bank based on your recording practices.

Lastly, I suggest integrating Square into QuickBooks Online. This way, you don't need to create separate transactions in QuickBooks for your Square sales. They'll be automatically downloaded for you. 

Don't forget to reconcile your bank accounts every month. This will help ensure your QuickBooks transaction match your bank statement.

Come back to this post if you need more assistance with recording Square payments. The Community team and I are always here to help.

Hi,

Thanks for this.

Being that I sync bank transaction by my bank being linked, this will already have the Square payment as a payment received, so does this mean I won't have to enter a bank deposit as I can link it to an invoice and split payment to enter the Square fee as you described? And this also means if I do it this way I don't even need to link Square to QBO? Thanks

Sorry, forgot to add, QBO will always have every invoice/sale as an invoice or sales receipt before Square has taken payment, I do not use Square with products/services that link to QB so I am wondering if I can simplify it by just catagorising it as a income on bank feed under Square Sales income account and split if there for fee.

Thanks

I'll help share additional information about Square payment transactions, accounts-2upc-co.

Yes, you don't need to record a bank deposit. You can categorise the transactions directly from your bank feeds. Here's an article you can refer to when categorising them and putting them into the correct account: Categorise and match bank transactions in QuickBooks Online.

Once everything is set, you can reconcile the account to ensure your books are up-to-date and accounted for properly.

You can add a comment anytime if you have follow-up questions or any QBO-related concerns. We're always ready to lend a hand.

Hi, thanks for confirming this.

Will this work for multi lump sum payment from Square, can I spkit and apply to seperate invoices?

Thanks

Thank you for getting back to us, @accounts-2upc-co.

I'm here to add information about categorizing and matching payments from Square to your QuickBooks Online account.

For lump sum payments, yes, you can find a match with your invoices to split it. If there's none, you can exclude the transaction. 

Once you exclude a payment, you should deposit to show it in the register as a lump sum as it shows in bank feeds.

You can check how to categorize and match transactions in QuickBooks Online for more information and your reference for the steps.

Once done, proceed with reconciling the accounts to messing your books.

You can click the Reply button below if you need further assistance with your payments. I'm always around to provide you with steps and resolutions to achieve your goal.

@accounts-2upc-co 

Consider having a connector to reconcile your Square transactions into QBO.