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brewbro
March 7, 2019
Solved

Recording Square Payments

  • March 7, 2019
  • 1 reply
  • 40 views

Hello,

 

I am manually entering Square sales into my Quickbooks Desktop. I do not have the integration anymore because it caused more issues with syncing than it should have. Square is depositing Net Sales into my bank account. I have my bank account feed attached to my Quickbooks. The Net Sales deposited into my account already have Square fees taken out of them. How do I account for the Square fees with this approach? 

 

Thank you. 

Best answer by Rose-A

Greetings, brewbro.

I'd be glad to lend a hand in accounting your Square fees via QuickBooks Desktop.

 

Receive payments for the amount of the sales receipt/invoice, a group with undeposited funds. When funding and fee status are known to make deposits, select your Square payment on the next line of the deposit enter the Square fees as a negative amount and assign to your processing fee expense account. 

 

Here's how:

 

  1. Click Banking at the top menu, select Make Deposits.
  2. In the Payments to Deposits window, select the payment/s that was deposited separately, then OK.
  3. In the Make Deposits window, on a blank line, select the overstated income account from the From Account column drop-down.
  4. Enter the negative amount in the Amount column. Make sure the Deposit subtotal is zero.
  5. Select Save and close.

You can check out this recommended article: https://quickbooks.intuit.com/community/Help-Articles/Understand-how-the-Undeposited-Funds-account-works/m-p/203721.

 

This will get everything nice and organized in your QuickBooks Desktop account. Let me know if there's anything else you need with accounting your Square fees. Have a good one.

1 reply

Rose-A
Rose-AAnswer
Level 10
March 8, 2019

Greetings, brewbro.

I'd be glad to lend a hand in accounting your Square fees via QuickBooks Desktop.

 

Receive payments for the amount of the sales receipt/invoice, a group with undeposited funds. When funding and fee status are known to make deposits, select your Square payment on the next line of the deposit enter the Square fees as a negative amount and assign to your processing fee expense account. 

 

Here's how:

 

  1. Click Banking at the top menu, select Make Deposits.
  2. In the Payments to Deposits window, select the payment/s that was deposited separately, then OK.
  3. In the Make Deposits window, on a blank line, select the overstated income account from the From Account column drop-down.
  4. Enter the negative amount in the Amount column. Make sure the Deposit subtotal is zero.
  5. Select Save and close.

You can check out this recommended article: https://quickbooks.intuit.com/community/Help-Articles/Understand-how-the-Undeposited-Funds-account-works/m-p/203721.

 

This will get everything nice and organized in your QuickBooks Desktop account. Let me know if there's anything else you need with accounting your Square fees. Have a good one.

S
sharieb
February 25, 2022

Hello,

I tried this solution in QBD, but the amounts are put into the "Undeposited Funds" account automatically when payment is received, so when I try to use that same account to take the Square fees out, I get the message that only Quickbooks can make deposits from that account. I can't use our regular chequing account either, as that's where the deposit is going. Is there any other solution to this?

R
Rea_M
Level 10
February 25, 2022

You're already on the right track in recording Square payments in QuickBooks Desktop (QBDT), @sharieb. I'm here to further guide you about this.

 

When you receive payments in QBDT, it uses Undeposited Funds as the default deposit to account. Then, they'll automatically appear in the Bank Deposit window when you make a bank deposit.

 

You're unable to use Undeposited Funds or your regular checking account to take out the Square fees. You'll have to add another line on your deposit as a negative amount then post it to an expense account. Please see the screenshot below for your reference.

 

 

To know more about putting payments into the Undeposited Funds account in QBDT, please refer to this article: Deposit payments into the Undeposited Funds account in QuickBooks Desktop.

 

Once you're done, go ahead and review and match your downloaded bank transactions to the existing entries in QuickBooks. This way, you can keep your financial data accurate. For the detailed steps, please check out this article: Categorize Bank Feed transactions in QuickBooks Desktop.

 

Also, I'd recommend reconciling your accounts every month. This will help you monitor your transactions and detect any possible errors. You can refer to this article for the step-by-step guide: Reconcile an account in QuickBooks Desktop.

 

Keep me posted in the comments if you have other concerns about recording and depositing Square payments and managing transactions in QBDT. I'm always ready to help. Take care, and I wish you continued success, @sharieb.

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