Do Direct Deposit count towards my Square Sales?

[Rachelo323]

Hello! I am new to the banking part of square and I just realized that my 3rd party invoices may not be captured in my Square Sales. For example, I wholesale on Faire. I have a few very large accounts that I have decided to stop invoicing in Paypal and move them to Faire, and when that invoice is paid, it's Direct Deposited into Square. It's business revenue. But I am wondering if Square views that as a regular banking transaction and not actual revenue. 

[JJ_]

At this time Direct Deposits into your Square banking account are considered bank transactions and not income or revenue generated via Square. This means that we wont report these as part of your 1099-K to the IRS (your Invoice provider should).

[user8011]

This was brought up in a previous thread, but not necessary specified for Airbnb payouts: https://www.sellercommunity.com/t5/Questions-How-To/Do-Direct-Deposit-count-towards-my-Square-Sales/...

 I setup my Airbnb hosting payouts to pay into my square business account.

These earnings show up as deposits and not as sales. These are my sales. It seems square may not be catering to this sector of business? If there is something I am missing, please inform me.

I manage multiple separate Airbnb Hosting Accounts with different Business LLCs. I use PP (PayPal) Business for two of those hosting accounts, but I am only allowed to have two PP Accounts. When I payout to PP Business from Airbnb, my payouts show up as sales in PP Business. This allows for PP working capital loans on those accounts after 6-12 months of sales.

I switched to Square Business for my new third Airbnb hosting account thinking it would be almost similar to PP Business, but my Airbnb deposits are not showing up as sales. This isn't ideal for me to use then, it serves no benefit for me without the sales. I would like to take advantage of Square's working capital loan benefits if eligilbe, but this will not happen without sales. I can see why this may not be a priority as. this isn't how Square is making their cut, but with more user's (hosts) means more transactions and fees for future Airbnb host account square business users.

Can the product team adjust these deposits to show as sales?

Can this account also seamlessly flow into BnBtally for proper bookkeeping into Quickbooks.

Any advice or recommendations is appreciated. Apologizes if this is an user error on my behalf from ignorance of a setting change on my side.

[_Violet]

Hi @user8011 - Thanks for following up on this topic.

I have reached out to the Square Baking Team to see if anyone could provide more insight into this. I'll be sure to share an update with you, once I've heard back from their team.

I appreciate your patience in the meantime 🙏

[_Violet]

Hi there, @user8011 

The Banking Team took a look into this. Here's what they had to say:

"If the Seller isn’t using Square to process the payment, then we can’t help. Sounds like they have Routing/account info set up so Airbnb is depositing only. They would need to process the payment through Square, which is why this isn’t working as they wish. This is why it works on PayPal and not Square. PayPal is the payment processor in that scenario."

I hope this information is helpful but please do let me know if you have any additional questions.