The way your profit and loss report looks is expected for the older Square integration. QuickBooks records a sales receipt for the gross amount, which is the total your customer paid. This is the correct figure for your tax reporting.
The integration uses two offsetting deposits to keep your bank balance accurate without doubling your income. The positive deposit is the net payout Square sent to your bank after fees or refunds. The negative deposit clears that payout from your Square holding account. Therefore, the P&L income figure being higher than what Square shows as your net deposit is correct, as Square shows you net, whereas QBO shows you gross.
Also, your 2025 transactions stay exactly as they are when you switch to the new connector. You won't need to rematch anything and can simply manage new transactions moving forward. You might still check with an accounting professional just to make sure your records are exactly where you want them for tax time.
Have more questions about your Square transactions? Drop a reply below.
