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brewbro
March 7, 2019
Solved

Recording Square Payments

  • March 7, 2019
  • 1 reply
  • 21 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.

M
MichaelDougherty
September 30, 2020

How do you manage the same process within Quickbooks Online? Thanks!

M
MirriamMQuickBooks Team
QuickBooks Team
October 1, 2020

Thanks @MaryLurleenM for your detailed answer. We have 2 customers and received a single deposit from Stripe. Can we account for the Stripe fee as a single expense (instead of having to split it)? And how would the matching of the deposit work for that? Thanks!


It's good to see you back, MichaelDougherty.

 

Yes, you can account the Stripe fee as a single expense. Just follow the steps provided by my colleague MaryLurleenM to create the deposit. 

 

Once done, you'll now be able to match the transaction created to the one downloaded from your bank on your bank feeds. See this guide when matching the transaction: Categorize and match online bank transactions in QuickBooks Online.

 

For future reference, you may find this link helpful: Setup bank rules to categorize online banking transactions in QuickBooks Online.

 

If you need further assistance when using QuickBooks, visit again in the Community space. I'll be more than happy to answer it for you. Take care.

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