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What is the proper way to enter a cash tip?

What is the proper way to enter a cash tip?

Message 1 of 76
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5 Verified Answers
Verified Answer

Re: Checks written over the amount charged.....

Welcome to the Community, @jrk7382, thanks for posting. 

 

I imagine this scenario comes up if your customer is adding a tip to their bill, correct? As opposed to paying the exact amount.

 

Currently there isn't the option to add tips on "Other Tender" payments, such as checks, but definitely see how this would be useful for reporting. As a workaround, I've seen other sellers suggest here to create a variably priced item - meaning you can add the price at the time of sale - called "TIp." This allows you to enter the amount separately from your total charge. 

 

Hope that helps, let us know if you have any other questions.

Verified Answer

Re: Can we account for tip jar cash tips in the Square daily sales reports?

I also discovered that there is a way to record cash in / out of the drawer.  It is in an odd place, under Reports (which is also where you Start and End a drawer to total it out).  That is usefull for something like "Hey Joe - Here's $20, go get paper towels!"  You could use it for tips, but I prefer the method we are talking about here because then you have a record of tips seperate from petty cash kinds of things that you would have a receipt for (e.g. Joe spends $12.45 and you put the receipt + $7.55 back into the drawer using the cash In option).  But you could use it for tips if it is a small shop. 

Verified Answer

Re: Can we account for tip jar cash tips in the Square daily sales reports?

@Ron - Great suggestion! 🙌  As a follow up, did you create a "Tip" item as well? 

 

@karl_f - You could make sure that there are no taxes enabled for this item. Also, you could also ring it in as "Other Tender" if you'd prefer. Alternatively, some sellers who use Cash Drawer Management also use the Paid In/ Paid Out feature to record tips.  

Ron
Verified Answer

Re: Can we account for tip jar cash tips in the Square daily sales reports?

We set up a TIP "category" and ring our jar tips up there. Hope that helps.

Verified Answer

Re: What is the proper way to enter a cash tip?

Hello! While I know this would be an incredibly useful feature for many merchants, we don't offer an official way to record tips for cash transaction. I have seen some merchants who use cash drawer management use the "Paid In" function to provide a record for these transactions. 


You can learn more about that feature here: https://squareup.com/help/us/en/article/5152-cash-drawer-management.

 

I'm happy to pass along your suggestion to our product liaison team. We're constantly working to improve our payment features based on the feedback we get from our sellers. 

1 Best Answer
Beta Member

Best Answer

Here's how you can easily run a report of Cash Tips collected... I was previously using the Pay In method, but found it extremely erroneous manually tallying up those Pay In amounts, so I did this:

- Set up a Category, call it Cash Tips

- Set up an Item, no tax, no price (variable), call it Cash Tips

- Set up a special, AUTOMATIC discount at 100%, call it Cash Tips, and apply it ONLY to your Cash Tips item

Then simply use the new Cash Tips button to record your jar tips.

Because of the automatic discount and zero-tax attribute, it won't affect your Net Sales. (Automatic discounts were a great discovery recently... great for happy hour pricing!) 

You can now run a Category Sales or Item Sales report for the day/week/month in roughly 3 seconds to get your Cash Tip totals. 😉 booya!

View Best Answer >

Message 17 of 76
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75 REPLIES 75
Square

Hello! While I know this would be an incredibly useful feature for many merchants, we don't offer an official way to record tips for cash transaction. I have seen some merchants who use cash drawer management use the "Paid In" function to provide a record for these transactions. 


You can learn more about that feature here: https://squareup.com/help/us/en/article/5152-cash-drawer-management.

 

I'm happy to pass along your suggestion to our product liaison team. We're constantly working to improve our payment features based on the feedback we get from our sellers. 


Sean
he/him/his
Product Manager | Square, Inc.
Message 2 of 76
5,669 Views

It would be great if there was a feature that service industry users could turn on to enable claiming cash tips before the employee could clock out.  Seems like a simple add on! Also, currently on the Square dashboard under Sales, one can only search hour to hour and not down to the minute. There should be an additional drop down with the minutes.  I need to see credit card tip ammounts for the exact time an employee was on shift.  Is there another way to see this?

Message 3 of 76
5,561 Views
Square

@TheRogueGrowler - Thanks so much for the feedback! It definitely sounds like this would be a useful feature. As for your question, it sounds like the Employee Sales Report would give you the information you're looking for. You can see exact employee sales (and tips).

 

Hope this helps! 


Sean
he/him/his
Product Manager | Square, Inc.
Message 4 of 76
5,551 Views

Seriously Square, why isn't there a tip option for cash payments!?!! I'm self employed and switched to Squareup to simplify my bookkeeping and this is bumming my flow... 

Message 5 of 76
4,293 Views

I totally agree!  I’m a hairstylist and solo stylist. Not that that should matter. I switched over from Vagaro and I could add tips into the receipt. Which is full disclosure for the clients and IRS. There should be a way to add a cash payment as well that will reduce the credit card amount due. 

Message 6 of 76
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Square Community Moderator

Noted! Thanks for contributing to this thread. As Joe mentioned, we'll reach out here when we learn about future product updates 🙂 @Charlottehair

Justin
Community Moderator, Square
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Message 7 of 76
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New to SQUARE Restaurants.   How do you account for cash tips on cash sales? How does our waitstaff adjust /account for cash tips at end of day?   

Message 8 of 76
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Admin

Welcome to Seller Community, @litachef01!

 

Check out the answer from this thread on accounting for cash tips for a potential workaround. I'm also merging your post into that thread, so if we add a feature for that then you can get updated.

 

Adam
Community Moderator, Square
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Message 9 of 76
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It's been over 4 YEARS since this thread was posted. Any updates? I am a solo and it's silly to have to use a third party option or setup some crazy work-around just to record cash tips for IRS purposes. I am always astounded by how such a large and progressive platform can lack the simplest of features/tools for small businesses and why on earth it takes so long to get a feature implemented. 

Message 10 of 76
114 Views

i personally use Homebase for all of my scheduling/ timeclock needs, separate company but works with square, they have an otion when the emplyee clocks out to claim all cash tips. love it!! there are other similar apps out there that work with square!

Message 11 of 76
5,559 Views

 This reply was created from merging an existing thread: How can employees report their cash tips when they clock out?

 

We are using the employee management feature that allows employees to clock in and out to record their time worked.  I need the employees to be able to report the cash tips that they earned at the end of each shift.  I can figure out how much their credit card tips were...but a majority of their tips are cash.  I need this to be tied in with clocking out so that when I pull their time card reports at the end of the pay period, I can see what tips they made.  Does anyone else have this problem?  Or have a solution to it?

Message 12 of 76
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Admin

Hello! I went ahead and moved your post here. Take a look at Sean’s Best Answer above! 

Helen

Seller Community Manager, Square

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Message 13 of 76
4,412 Views

This reply was created from merging an existing thread: Question on tipping

 

I enable "tipping" in my settings. I then go to do a test checkout using the option of "cash" and no tipping screen comes up. 

 

What am I missing?

Message 14 of 76
2,938 Views
Admin

Hi - I've moved your post to this thread @myhairsalon01 so you can read the Best Answer to this question. read the Best Answer to this question

Helen

Seller Community Manager, Square

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Message 15 of 76
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I came across this issue too. Using Paid in in cash management didn't really help all that much. What I ended up doing was actually setting up an item and named it "Cash Tip" and at checkout I select that item and put the tip amount in. That way I have a reporting of the cash tips I take in. I hope that helps for anyone else that needs or wants to keep track of cash tips.

Message 16 of 76
1,834 Views
Beta Member

Best Answer

Here's how you can easily run a report of Cash Tips collected... I was previously using the Pay In method, but found it extremely erroneous manually tallying up those Pay In amounts, so I did this:

- Set up a Category, call it Cash Tips

- Set up an Item, no tax, no price (variable), call it Cash Tips

- Set up a special, AUTOMATIC discount at 100%, call it Cash Tips, and apply it ONLY to your Cash Tips item

Then simply use the new Cash Tips button to record your jar tips.

Because of the automatic discount and zero-tax attribute, it won't affect your Net Sales. (Automatic discounts were a great discovery recently... great for happy hour pricing!) 

You can now run a Category Sales or Item Sales report for the day/week/month in roughly 3 seconds to get your Cash Tip totals. 😉 booya!

View Best Answer >

Message 17 of 76
2,700 Views

If I'm using the square appointments app and closing out my clients, I would like it to keep track of all of my monies. To do this I would like to show my tipping when receiving cash and checks as well as the credit cards. Is there ever going to be that option?

Message 18 of 76
1,788 Views
Square Community Moderator

Hey there, @dmsr99

 

I moved your post to a thread with some helpful tips on Cash and Check tips. 

 

Check out the Best Answer by David792

 

Thank you!

Kassi
Community Moderator, Square
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Message 19 of 76
1,755 Views

Definitely would like this feature too! An easy way to record cash tips during checkout is a necessity. 

Message 20 of 76
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Square Community Moderator

Thanks for adding your voice here, @AS444 - as soon as we have some solidified news on this front, we will reach out to everyone here and let you know!


Thanks for your patience.

Joe
Community Moderator, Square
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Message 21 of 76
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