PROFIT AND LOSS - Includes Taxes + Tips? [Square]

RagingTacosLV · ‎November 10, 2020

Hello!

I rent a food truck and I was recently looking into applying for a loan to buy another food truck and when my business advisor asked to see my profit and loss statement, I noticed that it our income was way off as of today our net sales are somewhere around $150,000 for the year but Quickbooks shows an income of $185,000. I have my Square and Quickbooks account linked up so square links up my bank deposits at the end of each day.

My issue is that I believe these "sales" that I am matching include both tips and taxes along with the actual sale numbers for the day.

Example: Total Deposit = $1000

Net Sales = $800

Tips = $100

Sales Tax = $100

When I run the profit and loss statement, the $1000 shows as income? When I label tip payments "Square Tips" under "other liabilities" it still does not subtract from that total since it's not an expense.

Thank you in advance!!!!

AlexV · ‎November 10, 2020

Good day, RagingTacosLV.

When you link Square to QuickBooks Online, you'll be asked to map not only the income but also the expenses like taxes and fees. We need to make sure that we selected the right account so they'll be posted correctly on your books.

Go to the Apps tab and select My Apps.
Find Square. Click the Action drop-down and select Settings.

From there, you'll see the options to properly map the data. For the existing data, you can create an expense or check transaction.

Another way is to create a journal entry. However, I recommend seeking some help from your accountant before creating a journal entry. Please check these articles for more details:

Keep on posting here if you have more questions. We're available 24/7.

Topics

Training

Community

Resources

PROFIT AND LOSS - Includes Taxes + Tips? [Square]

PROFIT AND LOSS - Includes Taxes + Tips? [Square]

Need to get in touch?