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Googalabosh
Level 1

Accepting Payment via Square (Desktop)

Some of my employees pay through Square. Square charges a processing fee (2.9% + 30¢) before depositing the money into my account. The customer usually makes two payments: 50% upfront and final payment. How do I account for the payment processing fee in Quickbooks Desktop?

 

Example:

Product Price: $250

First Payment: $125

Square Fee: $3.93 (2.9% + 30¢)

---Deposit: $121.07

Second 

Payment: $125

Square Fee: $3.93 (2.9% + 30¢)

---Deposit: $121.07

 

Thanks in advanced!

Solved
Best answer March 28, 2021

Best Answers
MJoy_D
Moderator

Accepting Payment via Square (Desktop)

I can show you how to account for the payment processing fee, @Googalabosh.

 

You can use an expense account for the processing fees you'll record in QuickBooks. If you haven't created one, you can follow these steps:

 

  1. Go to the Lists menu and select Chart of Accounts.
  2. To add an account, click at the bottom of the Chart of Accounts.
  3. Choose Expense or Other Expense as the account type.
  4. Add the name (processing fees/bank fees), then fill in the required details.
  5. Hit OK.

Once done, you're now ready to deposit the payment and record the fee.

 

  1. Select Make Deposits from the Banking page.
  2. Add the payment, then enter the processing with its amount (negative).
  3. Tap Save and Close.

If you want to have a separate record for the Square fee, you can create a check:

 

  1. Go to the Banking tab, then select Write Checks.
  2. Add the account, then the amount under the Amount column.
  3. Save the transaction.

You can refer to the following article for more information on how to record and make bank deposits in QuickBooks Desktop.

 

If you have additional questions about recording your transactions, feel free to get back to this thread. I'll be right here to help you anytime. Have a nice day!

 

View solution in original post

3 Comments 3
MJoy_D
Moderator

Accepting Payment via Square (Desktop)

I can show you how to account for the payment processing fee, @Googalabosh.

 

You can use an expense account for the processing fees you'll record in QuickBooks. If you haven't created one, you can follow these steps:

 

  1. Go to the Lists menu and select Chart of Accounts.
  2. To add an account, click at the bottom of the Chart of Accounts.
  3. Choose Expense or Other Expense as the account type.
  4. Add the name (processing fees/bank fees), then fill in the required details.
  5. Hit OK.

Once done, you're now ready to deposit the payment and record the fee.

 

  1. Select Make Deposits from the Banking page.
  2. Add the payment, then enter the processing with its amount (negative).
  3. Tap Save and Close.

If you want to have a separate record for the Square fee, you can create a check:

 

  1. Go to the Banking tab, then select Write Checks.
  2. Add the account, then the amount under the Amount column.
  3. Save the transaction.

You can refer to the following article for more information on how to record and make bank deposits in QuickBooks Desktop.

 

If you have additional questions about recording your transactions, feel free to get back to this thread. I'll be right here to help you anytime. Have a nice day!

 

A25
Level 1

Accepting Payment via Square (Desktop)

How can I record the processing fee thru the Receive Payments Tab (so the payment I'm recording should pay the cust. Invoices

Kristine Mae
Moderator

Accepting Payment via Square (Desktop)

Let me help you record the processing fee, A25.

 

You're unable to record it through Receive Payments option. You can do it in the Make Deposits window. 

 

Feel free to follow MaryJoyD's steps to help you record the fees. 

 

I'll include this article to help you learn more about receiving payments: Record an invoice payment.

 

Reach out to us again if you have other concerns. We'll be right here to help you. Take care!

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