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BrokenTrail
July 30, 2024
Question

Tracking Taxes from Square App Integration

  • July 30, 2024
  • 1 reply
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I'm having trouble understanding the proper way to track taxes collected from my POS (square) in QuickBooks. I have the proper taxes set up automatically in QBO, which are GST and PST for my location (Canada, BC). When transactions are imported from Square, QBO shows a line "included in total collected: Sales Tax" which shows the proper tax collected from that sale, but when matched with the deposit in my bank, this tax goes into an account titled "Square Sales Tax Payable" and not into the QBO GST account. How to I get this to go into the tax account instead?

 

Most of my products are GST-only, but some will charge PST in the future, I am assuming at this point that they will be combined by QBO into one "included in total collected" tax category. How will I separate these out into the different tax accounts?

    1 reply

    A
    Accracy Accounting
    July 30, 2024

    As far as I know, you are stuck with GST and PST being allocated to the same line. I tried out few third party integration like Zapier and Bookkeep but Square only provides single sales tax API line. So there is no way to split it. I guess that's the reason why the standard Square integration doesn't have sales tax mapping.

     

    To add to this, the current process doesn't even link the sales tax line to other income/discount lines because sales tax is being added as a separate line rather than using sales tax code to allocate taxes. When filing taxes, you need to enter Taxable/Non-Taxable sales amount. All sales lines are added as non-taxable. So bottom line, there is no way to fix this in GST & PST context.

     

    Options you have

    1) Do manual Sales Tax Reconciliation (i.e. do not use QBO Sales Tax module at all). This is not practical.
    2) Once a month Manually import Daily aggregate sales receipt + Payment journals with proper sales tax code. This will allow you to use QBO sales tax module.
    3) Switch to another POS system. I would suggest using TouchBistro. Toast is another good one. I have worked with both, and they have options to map sales tax code allowing you to use QBO sales tax module. You will need a third-party integration app to sync POS to QBO.

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