Reconciling A/R with Square fees subtracted daily instead of a monthly debit to bank

[IFangie]

New to Square...How do I account for fees subtracted daily in QB when I "make deposits" from payments received -A/R?   with other processors, the fees are debited monthly, so it's clean.  Monthly journal entry?  Seems reconciling my bank statement could be a nightmare.  Thanks for any help!  

[ThierrLRC]

Hi there

Square does it daily. What I have been doing is enter in my books the total deposit minus the fee for every day. The fees are indicated in the sales report. It is a little more work than monthly fee but at least there is no surprise at the end of the month. If you don't enter it daily to match Square that would be a nightmare to reconcile your bank statement as you said.

Good luck

Thierry

[CubScoutPack99]

Thank you for the tip about how to reconcile the Square deposits. In my software (CountAbout.com) I make a split transaction and log the gross deposits, then the last sub-item is a withdrawal for the credit card fees. That way when I run reports, I can exactly how much we've spent in total credit card fees.

[GoldenGateDoors]

It IS a nightmare. I understand that square services many hobbyist who are not doing proper accounting, but I'm seriously considering switching merchants.  the issue lays in the fact that their deposits to your bank account do not match your sales in your accounting software and negate any matching system you may have. I would much rather have them deposit the full funds then charge their service fees. It would make a world of difference.