How to Record Square Transactions Manually in QuickBooks Online

How to record Square transaction in QuickBooks Online when integration is not working correctly.
How to get the right information from Square what kind of reports do you need to reconcile and record any difference in QuickBooks Online.
How to manage Square Bank clearance account.
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[@CorlissMerrill]

Very informative. Excellent tutorial. Thank you!

[@ClaudiaXperts]

You are welcome Corliss!

[@MrDoctorD00m]

Thank you for the video. Bookkeeping has always confused me when it came to app integration.

[@ClaudiaXperts]

Glad that the video on how to manually enter Square transactions helped!!

[@bluhuny]

Your videos helped me.

[@ClaudiaXperts]

So glad to hear that Jay!

[@jstrei55]

Claudia this is a GREAT video!! I'm wondering what would you do where the Checking amount in the J/E does not match exactly the deposit transactions flowing in from the bank account? For instance, depositing cash from sales for multiple months, mid-month, etc. Thank you again for the great videos.

[@ClaudiaXperts]

If it is cash payment I record the deposit to cash on hand bank, and when the money is deposited in the checking account categorize as a transfer coming from cash on hand. If in the end there is a money difference do a Journal entry or transfer to send it to owner draw or record the expenses paid with cash

[@ClaudiaXperts]

Thank you!! Glad you liked it

[@ToddJohnson15]

Even the aggregate doesn't work well. QBO's import ignores square variations, gets sales tax incorrect for some reason, ignores Classes set up by product in QBO, doesn't properly fill in location. Square fees are also problematic. Sometimes QBO handles them correctly, but often if there is any issue with the imported square sales receipt and you need to fix it, then you can't match to the bank deposit. Also, if you get the Square sales receipt as a summary and the sales were paid using multiple deposits (say some square and some recorded as cash transactions when a customer zelles you) QBO cannot match one sales receipt to multiple deposits. You can only match one deposit to multiple receipts. If you just put all income into income as you do in the video you lose the ability to do a profit and loss statement that shows categories of income. In short, QBO's handling of Square is insane. I suspect that I can use the method you outline for sales receipts that don't work using the automation, but enter by category instead of lumping every sale into income.

[@ClaudiaXperts]

This is not a perfect integration. I would suggest to track the sales detail in Square and not track item detail in QuickBooks. You are right the integration does not have the capacity to track classes unless you do it manually. If you have a few large transactions is fine when you have a large amount of transactions this does not work. This integration is not set up for complex tracking. You may disconnect the app and just add the sales summary as a Journal entry and create a Square clearance account for that. But it will not track any item details either.

[@snowbo0908]

Hello Claudia. Thank you for the informative video. I am a beginner bookkeeper still learning and have a couple of follow-up questions for you with respect to your journal entry. You entered the sales tax amount in your journal entry to Florida department of revenue payable and that part puzzles me. 1. Did you manually create the account of the Florida department of revenue payable? If so, how do you link it to the sales tax liability report so that the sales tax owed shows up automatically? 2. How would you handle transactions at two different tax rates (e.g. Alcohol vs Non-Alcohol) imported into one account in QBO? How would you re-organize them into the proper accounts? Thank you so much for your content!

[@ClaudiaXperts]

This is a whole new subject that I am unable to answer through this channel. The Florida dept of Revenue is created when I activate the sales tax by clicking on the left hand side tax tab. When you create your products and services you can edit the sales tax rate.

[@melaniedaboud1911]

Hi Claudia, thanks so much for the video. I have a question related to what you've covered, but I'm unsure how to go about it. Banking transactions (deposits) are not linked to the app transactions, and it seems to be a day difference (transfer happens one day, but deposit happens the next business day). Any tips to get these transactions matched? I could match a couple with no problem, but some don't want to. I'm not liking this new app integration AT ALL...

[@ClaudiaXperts]

Hi Melanie, the one or two days difference will not impact your ability to match. The reason it is not matching is something else. Probably the amount is off by a little bit. My guess it could be sales tax discrepancies. But I am not able to know without looking at it.

[@carlosluna743]

Hello Claudia. Great video.But I need help with quickbooks online with square, going crazy please.Thanks.

[@ClaudiaXperts]

Hi Carlos, you can hire us for a one on one training. Please feel free to text me 407 504 9828 if you want to hire me for a training

[@carlosluna743]

@@ClaudiaXpertsThanks Claudia. Text you tomorrow.Thanks a lot.

[@katreenabennett4400]

I have a question. If you are recording all the square income by the deposits in the bank feed, but you need to manually record the square fees in a journal entry, what does this journal entry look like?

[@ClaudiaXperts]

You would debit Square fees and credit sales

[@glenw.3813]

Hey Claudia, thank you for the video. I have a nagging question about the App (Review, Categorize, Exclude) functionality in QBO. If a bookkeeper chooses to not use this feature in QBO, say they choose to manually record Square transactions with JEs, do you just ignore the app review? Should you exclude these transaction to clean out transactions periodically or just let them accumulate? Thank you again for all the informative videos. Most your videos demonstrate using this feature in QBO for Square, but I was curious what happens if you don't use it. Take care.

[@ClaudiaXperts]

If you do not want to use the integrated exclude all transaction, then disconnect the app. You don’t want to duplicate transactions Glen. I thought you would like this one this is what you asked to cover right?

[@glenw.3813]

@@ClaudiaXperts Yes, thank you.

[@ClaudiaXperts]

@@glenw.3813 you are welcome!

[@marylu717able]

Hi Claudia can I do JE for Daily sales

[@judegomes5179]

very informative video

[@ClaudiaXperts]

Awesome glad you liked it!!

[@acieramos2908]

I am new to posting tips. If it's a tip payable, how do you offset that later? Is that turned into the owner's draw at the end of the year? Or retained earnings? Thank you so much!

[@ClaudiaXperts]

Hi tips payable is a short term liability, when you pay the liability you will categorize the expense account as the tip liability to offset the liability account.

[@upanotchlasercreationslase2672]

So I have not been doing this correctly the whole year, is there a way to show the fees after the fact and then how do you clear them?

[@ClaudiaXperts]

This is when you are not integrated. Yes you can do a Journal entry to account for all the fees.

[@user-et9pd1ke4b]

none of these options in square pop up. balance does but not the transfer option

[@ClaudiaXperts]

Verify if your pop up screen is blocked. If so make sure to undo your pop up blocker. This information is in Square

[@natashalarson9648]

OMG. I am so confused. I need so much help 😭

[@ClaudiaXperts]

Hi Natasha, I do offer one on one consultations. I charge $100.00 per hour. Please feel free to call me to schedule a meeting at [e-mail]

[@florak1087]

Hello, my accounting angel.😇 I have a special issue. One that you might want to put on your channel so it would help others. I am helping a friend with this business that started in August 2022. He got a Square account at one point, and on the first bank statement, he has some charges. Two separate people (one is their mom) have tested out the system and bought something from him. There are sales receipt #'s for both of these. (is that how you do it in Square~or is that created in QBO?) So, I see two bank deposit amounts on the bank statement (not the full amount) and looks like fees of $0.01 that went in and out to balance to zero. What happened was that as soon as Square found out that his product contained CBD oils, they cut him off. (news to me and your listeners!) When starting to reconcile I saw that there was nothing in there that had the Square transactions. Though I did see sales receipts with the purchaser's names referenced on the line items. So would there be a journal entry to remove all of this because the Square account was rejected? Also, I just found that there is a duplication of INV and SALES RECEIPT #10003(is that a Square sales receipt #?) for two different people, different $$$. Do I have to recreate them? If it does not show up on the bank statement as income, then was it just missed in the transfer over? (delete it all?) So many, details. I hope this made sense. I can send you screengrabs if you want. Your wisdom is much appreciated and is making me more confident. 🤩 Muchas gracias.

[@ClaudiaXperts]

Hi Flora, it looks like there could be discrepancies there. Categorize the Square transactions his mom made as bank fees they should offset each other. I would not add any app transaction since it was disconnected. Just add as income and do a journal adjustment for any fees charged such as Square fees sales tax and others to match what Square report has. For the duplication if you know for sure it is duplicated you should void the duplicated transaction.