[QBSE] How to account for credit card fees?

Hi there,

I'll be glad to share some steps on how you can record the total amount that includes the credit card payment fee in QuickBooks Self-employed (QBSE).

You can manually record the card processing fee in QBSE. To ensure this transaction will show on the correct line, you'll need to categorize it.

Here's how:

1. From the sidebar menu, select Transaction.
2. Click Add Transaction.
3. Enter the description and amount (£25) of the fee.
4. Choose the nearest category that will fit as a processing fee.
5. Select Save when done.

If you're not sure which category this transaction belongs to, I recommend referring to your accountant for professional advice.

Moreover, I'm adding this helpful article as your reference categorizing your bank transactions in QBSE: Categorise transactions in QuickBooks Self-Employed.

Come back to this post if you have other concerns or follow-up questions regarding processing fees in QBSE.

Thanks for that. There isn't a "transaction" category for this. I can select "Bank Charges" which then add that credit card payment as an expense, or "credit card payment" which isn't an expense and QBSE instead classes it as a transfer.

But, also, this doesn't address that "Business Income" will over be in excess of the what my true income is, again, affecting what I report to HMRC for SA. Using the earlier example, my Business income will record £1025, but my actual income will be £1000 with a £25 expense.

Is that right?

Thank you for your quick reply and your screenshot provided, @bhcopy.

Please know that I've updated my response above with the correct information. The bank charges category is unavailable because it's only available in the US version of QuickBooks Self-employed. 

Concerning your unmatched business and actual income, if your bank account is connected to the QBSE account, you'll need to exclude the bank transaction and manually add £1025 as income and the other £25 as an expense under the nearest category to correct the recording in your business income.

Additionally, I'm adding this helpful article as your reference for manually importing your transactions in QBSE: Manually import transactions into QuickBooks Self-Employed.

Let me know if you have other concerns regarding your processing fee and bank transactions in QBSE. I'm always here to provide further assistance.