Square Sales transactions

Hi @MadelynC  -- Thanks for following up on this!

A few questions:

• We do not have a Square Bank account, just our regular business operating account into which the Square sales are deposited, which is synced with QBO. When the deposit hits the bank account, and then shows in QBO, in the banking transactions tab where you would categorize all of the bank activity, QBO gives the option to "confirm" the deposit that it has matched with the multiple Square sales from the prior days activity.
  • I'm thinking that this is incorrect, if QBO is already accounting for all of the Square activity that has come over. In that case, what is the step to categorize the bank deposits from Square if they're already being recognized as revenue.

One more separate question:

• When Square automatically applies the Sales Tax liability when customers pay for their purchase, how do you expense the Sales Tax payment that should offset the Sales Tax liability? When the payment to the state hits the bank account, I can't categorize it against the sales tax liability.

Thank you!

Hello there, @ParkerBru.

You can sync your bank account and create a separate account if you have other transactions there aside from the  Square transactions. If there's none, you don't need to connect your bank account.

If your Square and bank account is connected in QuickBooks Bank feeds, you can exclude the transactions in your bank account and delete them. This is done to avoid duplicate transactions especially if you've integrated your Square application to your QuickBooks company to download the invoices and payments.

You'll have to check the default accounts from Square if your setup is the same as the scenario I've mentioned above. If you're not able to see that in the Chart of Accounts, you'll need to create accounts to track your Square sales, expenses, and fees. I'll show you how to do that:

1. Go to the Accounting menu and select Chart of Accounts.
2. Click the New button.
3. Enter the applicable details of the following:
   • Account Type
   • Detail Type
   • Name
   • Opening balance (optional)
4. Select Save and Close.

I've added these articles to know more about the default account settings and how to manage the Square app:

• Sync Square with QuickBooks Online.
• Sync with Square - Default Accounts and Names.

I'll be here if you need further assistance. Feel free to tag my name in the comment section. Take care.

I'd like to help you ensure your reports in Square and QuickBooks match each other, accountingatheart.

Before anything else, I'd like to gather additional information about your concern. First, what reports did you generate in Square and QuickBooks? Also, it would be helpful to know if you've customized the reports in any way that could change the data displayed on the report. Providing me with more details would greatly assist me in giving the most accurate resolution to your matter.

In the meantime, I recommend checking whether any reports you ran were customized. This might result in a variation in the reports. Also, it's important to note that sometimes sales receipts can be associated with a deposit, while others may not. This depends on the entry and whether or not a bank has been associated with it. 

I'll leave this article for more info on matching your transactions in QuickBooks and customizing reports to display specific information:

• Match online bank transactions
• Customize reports in QuickBooks Online

For future reference, here's a step-by-step guide to reconciling your QuickBooks accounts with your real-life ones: Reconcile workflow.

I am always here to help you with any further inquiries about matching transactions and running reports, accountingatheart. Feel free to ask me anything.