Square Banking Q&A: Let’s talk about how Square Savings can help you manage tax season.💰

[Tom]

Hello Seller Community,

As we marked the one year anniversary of Square Savings, we welcomed back @jmonfort to our forums for a discussion on what’s going well and what we can do to improve your experience with Square Banking.

We understand that your time is precious, and we want to make sure you’re able to focus on what matters most: running your business. Square Savings helps automate and organize tax preparation, whether you pay your business taxes monthly or quarterly. We look forward to hearing from you on ways we can make saving as seamless and worry-free as possible.

Wondering what to ask? Here are some example questions: 

• What are the latest Square Savings features and how do I get the most out of them?
• What’s the benefit of setting up an account with Square Banking versus my existing bank account?
• If Square Savings could take care of “_______” for me, that would make managing finances much easier.

We can’t share specific details on our product roadmaps, though this information will be helpful as we continue to make improvements.

Block, Inc., is not a bank. Banking Services provided by Square Financial Services, Inc., and Sutton Bank, Members FDIC. This article is for information purposes and does not constitute legal, financial, or tax advice. We are not tax professionals. For specific advice applicable to your business, please contact a tax professional.

[inkdawgz]

FDIC does not set those rates nor do they have the power or authority to se those rates, that number is determined by the CFR, but if your local market is higher, the banks can go higher. Most businesses do not have savings, they put their money into more secure things like CD's, etc. As a sole proprietor, partnership, etc you are always better pulling the money out and putting into personal savings. All the profits go to them anyways. Why earn next to nothing, when they can earn more in their personal savings setup just for this. You can take a draw and not show it as income on personal, since it is a draw. Either way, it is always better to put money into an account that will make you money, this 0.39% will not make me any money, it will make square money, but not the small business. 

[Monika_HAC]

I would love to make the switch and use square checking and savings. Is the programming compatible with Quick books. Will my book keeper be able to upload my numbers directly to quick books instead of manual entry per transaction? How quickly do transfers in the banking app. And how quickly does it take to transfer to another bank account? 

Thank you! 

[jmonfort]

Hi @Monika_HAC, Square Checking and Savings accounts can be a great option for managing your business finances, but there are some limitations when it comes to integrating with QuickBooks.

At the moment, it's not possible to link your Square Checking or Savings account as a bank account in QuickBooks. Nonetheless, you can still manually export all Square Checking transactions as a CSV file and then import them into QuickBooks. For Savings accounts, Square doesn't currently support an export function. However, we are aware of this feature request, and it may become available in the future.

As for transfer speeds, you can instantly transfer funds between Square Savings and Square Checking, and can spend them on your Square Debit Card immediately—for free. You can also make standard, cost-free ACH transfers to external bank accounts and expect funds to settle within 1-2 business days.

[GourmetOnWheels]

@Tom That time does not work for me but i have one question

Will Square Banking work with Profit First like The Relay Banking system at relayfi dot com.

That would be a incredible for me.

René

[HC_Charlie]

Hi @GourmetOnWheels i haven't heard of Relay Banking, but it looks really interesting. I'm going to check out what they do! As far as the Profit First system, I've been trying to implement that for the past several months; I think it's a great system and I'm already starting to see some benefit in allocating income like this. I think you'd be able to set up different savings "folders" in Square Savings and call them like Profit First. You can set the different folders at different percentages based on your business' plan, and then keep the OPEX amount as your direct transfer into your outside checking account to use to pay your Operating Expenses.

I personally use Square Savings just for my state Sales Tax, so that is taken out first because I always overlook that expence, and then I allocate the other amounts in my local bank accounts.

[GourmetOnWheels]

@HC_Charlie I just signed up for a fee-free account except for Wire Transfers. And the pro version is 30.00 per month with no other fees.

You can get 20 checking accounts and up to 50 Visa Debit cards, actual cards or digital

Create an auto-transfer rule to allocate money from Income to other accounts automatically. Customize your percentages and frequency, then let Relay take care of the rest.

René

[SBerger75]

Will square put a percentage into savings  from deposited checks ?

[jmonfort]

Hi @SBerger75- we’re not currently able to automatically pull a percentage out of a deposited check, however Square Savings accounts do have account and routing numbers and you could either deposit the check in directly, or manually transfer a portion into Square Savings.

[Missy22cc]

Square Savings threw off the auto feed in Quickbooks. It was a nightmare to reconcile. 

[FlawlessRiley]

I wish and would love to be qualified for square savings

[GourmetOnWheels]

That time does not work for me either. Will it be recorded?

Question: Is Square Banking going to work for Profit First accounting? Like Relay Financial? If they are I will not join Relay Financial

René

[Tom]

Hi @GourmetOnWheels, thanks for reaching out! I moved your question into this thread to make sure the Square Banking folks see it.

This conversation is happening here, in text. There isn't a recording but you can check back here to see what came up. Appreciate your patience and keep watch for notifications. 🙏🏻

[GourmetOnWheels]

@Tom Thanks, by the way we are an S-Corp does that prevent us from sing Square Banking?

René

[jmonfort]

Hi @GourmetOnWheels - S corps are eligible to open a Square savings account. We also support other business types such as sole proprietors, LLC, C corps & Partnerships.

[GourmetOnWheels]

@jmonfort Question: Is Square Banking going to work for Profit First accounting? Like Relay Financial? If they are I will not join Relay Financial

[nishpatel]

I would like to re-apply for the savings account. I have it for one of my businesses but they couldn’t verify the information for the second one. Maybe I miss typed something? But now I can’t even apply

[GourmetOnWheels]

@jmonfort Square savings interest rates are falling quickly behind others

American Express savings are 3.75%, 

Apple Card launches 4.15%-yield savings account

René

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[jmonfort]

Hi @GourmetOnWheels, yes we've seen other institutions increasing their rates. A lot of those rates are for consumer/personal savings accounts. The national average for business savings accounts is 0.38% APY, according to the FDIC, which is also far better than what big national banks typically offer. As of this writing, Chase and Bank of America offer just 0.01% APY on their respective business savings accounts..