Hello @Eportello and thanks for your post. Just a disclaimer, I am NOT a tax professional or accountant, but I have used an accountant for my business in the past several years. This is based on my own personal experiences...
I think your Square 1099 would only include actual payments that "passed through" Square's hands, like the credit card payments. The cash payments given to you by your customers did not go through Square...they came directly to you. Are you using an accounting software for your business like Quickbooks or Zero? you should be using an accounting software or at least keeping paper journal records for your business for your accountant, or for your year-end account filing.
Remember your POS/Square system only accounts for Credit Card sales, and also does not record any Cash sales for 1099 reporting, of your other business EXPENSES like rent, electricity, raw materials, phone or internet, etc. You should be keeping either electronic or paper records of CASH, CREDIT CARD INCOME....as well as all your EXPENSES. If you are recording your sales and expenses into your accounting books, then the Square 1099 really doesn't show anything new. I supply my accountant at the year end with the Square 1099, but my books already include that income as well as my CASH income and other income I received by invoicing my customers directly, outside of Square.
You'll have to have some record of your CASH sales that you can add to Square's 1099 form. I hope this helps answer your question. For more info about 1099s check this link.
