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How do I reconcile the missing amount of total income due to the subtraction of Square’s fees in QB?

 I am in Ontario and have to charge HST tax for all of my services, and submit that to the government annually. I use QuickBooks for my bookkeeping, which automatically downloads all of my banking transactions, including deposits from Square, and calculates the total money coming in as income. Of those income transactions QB’s also calculates the total included amount of tax from the total and keeps a tally so I know what I have to remit in my tax payment. 

 My problem is that Square the deducts fee from each transaction before it is deposited into my account, so QuickBooks is only calculating the tax on the cost of the service minus Square’s fee.

I have to pay tax on my total gross income, so because of this set up from Square, my QuickBooks is miscalculating all of my income comming from customer payments made through Square, as well as the total collected HST tax and the amount I have to remit. 

How can I work around this without having to manully enter in an additional transaction to account for Square’s fee (plus the amount of tax obtained from that fee amount) for EVERY SINGLE income deposit from Square?  

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Admin

Re: How do I reconcile the missing amount of total income due to the subtraction of Square’s fees...

@fruitfly

 

Your Square Dashboard will calculate the total tax you have collected. I believe you can edit QB to show that the tax being calculated is different from that which needs to be remitted?

 

In this case though, I would suggest reaching out to a Quickbooks ProAdvisor - as Quickbooks owns this integration and takes our reporting as an input to manage. 

 

Most Seller's who have reached out to a ProAdvisor have figured out the best way to work between the two platforms and how best to calculate and keep your taxes/account correct.

 

https://quickbooks.intuit.com/find-an-accountant/

kellyj
Beta Community Manager, Square
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Re: How do I reconcile the missing amount of total income due to the subtraction of Square’s fees...

I'm having the same issue! Was really happy with Square til I had to manually enter every

transaction that is processed with Square into QBO! Why can't Square just take their fees separately and not mess up everyones books?! QBO does it this way and makes it easy to reconcile. Wish I would have known this before I decided to use Square

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Square Community Moderator

Re: How do I reconcile the missing amount of total income due to the subtraction of Square’s fees...

Hi @SignGuyMark - I'm really sorry for the frustrations reconciling your transactions is causing, and to hear that it has taken up so much of your time.

 

I would recommend taking a look at @kellyj's post here. Getting in touch with a Quickbooks ProAdvisor is what we advise if you're running into any roadblocks, as they own the integration.

Valentina
Community Moderator, Square
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