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A
accounts-2upc-co
November 27, 2022
Question

Square & Best Way

  • November 27, 2022
  • 2 replies
  • 0 views

Hi,

I already use Square terminal but not linked to QBO yet.

I don't want to track products and services via Square, I plan to do it all from QBO by creating an invoice.

I have Square Sales setup as an income account.

I have linked my bank so I mark off Square payments received under bank transactions.

I have only just started to setup QBO so currently I just mark of payments by catagory, not invoices yet.

What I want to know is what is the best and quickest way of recording Square payments, I would hope I can mark off on bank feed but need to account for the fee, can I put neg amount and record as Merchant Fee's expense? But what about if Square pays my bank lump sum that is from multi customers. I don't store customers on Square account and don't wish to, same as for products/services ijust want to do all via QBO. Can this be done to allow QBO see one amount from Square but split amounts coming from Square non customer names? Thx

2 replies

M
Mark_R
November 27, 2022

Hello there!

 

Let me help you record Square payments in QuickBooks Online (QBO).

 

The best way to record payments from Square is to make a bank deposit and add the fee as a negative number. Here's how:

 

  1. Click + New, then select Bank Deposit.
  2. From the Account drop-down, choose the account you want to put the money into.
  3. Go to the Add funds to this deposit section. Then, enter the name of the customer and other payment information.
  4. Enter the charge as a second line item.
  5. Choose who the fee was from (the bank charging you).
  6. Select Bank Charges from the Account drop-down.
  7. Enter the amount fee as a negative number. 
  8. Review the deposit total with the bank fee.
  9. Click Save and close.

 

For the lump sum, I recommend seeking help from your accountant. They can guide you on how to record the lump sum from your bank based on your recording practices.

 

Lastly, I suggest integrating Square into QuickBooks Online. This way, you don't need to create separate transactions in QuickBooks for your Square sales. They'll be automatically downloaded for you. 

 

Don't forget to reconcile your bank accounts every month. This will help ensure your QuickBooks transaction match your bank statement.

 

Come back to this post if you need more assistance with recording Square payments. The Community team and I are always here to help.

A
accounts-2upc-coAuthor
November 27, 2022

Hi,

Thanks for this.

Being that I sync bank transaction by my bank being linked, this will already have the Square payment as a payment received, so does this mean I won't have to enter a bank deposit as I can link it to an invoice and split payment to enter the Square fee as you described? And this also means if I do it this way I don't even need to link Square to QBO? Thanks

E
Ethel_A12
November 28, 2022

Thank you for getting back to us, @accounts-2upc-co.

 

I'm here to add information about categorizing and matching payments from Square to your QuickBooks Online account.

 

For lump sum payments, yes, you can find a match with your invoices to split it. If there's none, you can exclude the transaction. 

 

Once you exclude a payment, you should deposit to show it in the register as a lump sum as it shows in bank feeds.

 

You can check how to categorize and match transactions in QuickBooks Online for more information and your reference for the steps.

 

Once done, proceed with reconciling the accounts to messing your books.

 

You can click the Reply button below if you need further assistance with your payments. I'm always around to provide you with steps and resolutions to achieve your goal.

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