Cash Sales Reporting to Quickbooks

[dgilchrist6361]

I see that my Square credit card sales are being "deposited" to my Square Funds account in Quickbooks. But what about the cash sales? Does Square "deposit" that anywhere in Quickbooks? Or is that something I have to manually input into Quickbooks?

[Sean · Accepted solution]

@dgilchrist6361 - Welcome to the Seller Community, and kudos on your first post! As for your question, from what I understand, each night, all sales recorded within Square are brought over to QuickBooks as an invoice, with the appropriate details. You can find more details on our integration with Quickbooks here.

PS) If my answer solved your problem, would you mind marking it as "Best Answer"? That'll help the rest of the community find what they're looking for. If not, just write back, and I'll continue to help. Thanks!

[Davidswowgarden]

Does cash sales entered on square get reported to the IRS via the 1099-k form?

Also, does square charge a fee for cash sales transactions?

[Spenser]

No fees for cash transactions, @Davidswowgarden. Square only reports on cards transactions processed through us. The cash and "other tender" payment options are just for your organizational purposes. Hope that helps!

[MCBC2020]

Hi Sean Hehimhis, you just linked to the integration page, which doesn't answer the question. "Where do Square Cash Transactions show up in QBO?"

[corkatoa]

The title of this thread has been edited from the original: How to stop Square from reporting cash sales to Quickbooks?

I am trying to fix quickbooks.  I have my cash sales doubled because square reports them and they are also on my bank statement as a deposit.  I need the report from square but do not want them duplicated.

[Helen]

@corkatoa At this time it looks like all sales, card and cash, are automatically sent to Quickbooks from Square.

From the Square side there isn't a way to exclude certain sales. But I recommend reaching out to QuickBooks Support so they can look in to why your cash sales are duplicating and help you to resolve this.

[Rachelleocanada]

I use Sage 50 Cloud and I record my sales monthly and post all of my transactions to a clearing account. (debit clearing and credit sales) Then I record the deposits from square (debit bank and credit clearing) Square does not integrate with Sage 50 so I am doing all of this manually. Then I record my cash deposits to this clearing account as well. If anyone has a better system, let me know. It's very cumbersome.It's had to reconcile because we are dealing with TIPS too.

If anyone knows what happens with Gift Card transactions (tips and sales) I would love to know about that. I think this part is what is throwing off all my numbers each month.

[MCBC2020]

Your cash sales need to be matched with your deposits. I am trying to figure this out also. 

[WABBQ]

This reply was created from merging an existing thread: how to account for end of day cash deposit for quickbooks online integration?

How do I account for the end of day cash deposit for quickbooks online integration?

[Helen]

Hello @WABBQ! With the Quickbooks Online integration your sales should automatically be sent from Square to Quickbooks. If you need help setting up Quickbooks online you can contact Quickbooks Support. 

I'm adding your post here to keep the Community organized! 

[Bdole]

This doesn't answer the question.  Cash sales are reported in Quickbooks from Square just fine.  But we also have to deposit the cash in the bank at the end of each day.  What does that get categorized as within Quickbooks?  If Sales of Product Income is chosen, then all cash sales will be double-reported and thus double-taxed, so it has to be something else.

Thanks to anyone who can help.

   -Joel

[Helen]

@Bdole Have you tried contacting Quickbooks Support team for how they categorize the actual cash deposit to your bank? They should be able to help. 

[GlassJudy]

When Square sends your daily sales to Quickbooks, the entries will be 1) Your income account will increase, and 2) Your undeposited funds account will also increase (net effect: your company's value has increased).  When you make the deposit to your bank account, 1) your undeposited funds account will decrease and 2) your checking/savings account will increase (net effect: your company's value is unaffected).  If this isn't happening, your accounting isn't set up correctly, and you should contact Quickbooks to see why.  Square probably isn't really involved here, as they transfer funds into the accounts you have set up for them to use.

[Davidsonbkkeep]

That would go from undepodited funds.  All the square transactions does it put in the invoice and record the payment (from my experience not well at all since there is a lot of adjustment here and there that ends in higher revenue than the actual and you can never match up the deposits and have to do another adjustment for companies with A LOT of transactions a day like restaurants). But the funds should be in undeposited funds to record the bank deposit against. 

[MCBC2020]

We had this worked out with Zoho Books, Cash sales were added to our "Cash" account, then we would make deposits from "Cash" into the Bank account. 

If you can tell me where Square cash sales show up in QB, please let me know 

[MCBC2020]

Not helpful. Quickbooks support just gave me a link to this page. The blame it on Square. 

[dunnoutdoors]

I've searched and read some information from QB and also Square but I can't find a good detailed answer.

I really like how Square imports nightly all transactions to QB and they can be matched up to the cash deposits to move them out of "undeposited funds".

What I don't fully understand is how returns work. Before I try to explain what I'm seeing in detail (a payment transaction in the QB register) does anyone know if there is a detailed explanation of how a cash (or CC return) is handled with QB to Square integration?

Meaning how is the accounting done? What happens if the return is in the next month does it automatically reduce the sales tax liability for that month in the QB report?

[Kassi_]

Hi @dunnoutdoors - 

Thank you for your post! I moved this to a board with a similar questions other sellers had about transactions with Quickbooks. For how refunds are reported to your Quickbook reporting, I would recommend reaching out to Quickbooks directly for this question. We don't have control on how the information is imported into their system. Please let us know if you need anything else!

[dunnoutdoors]

Thanks but I don't see an answer about the returns. This is important as it impacts lots of things like monthly state sales tax liability reports.