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How is savings calculated

Is square savings for taxes calculated on all sale cash or card

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Hi @deesignsbydee

 

So, Square automatic savings is calculated based on card processing volume only, no cash.  Keep in mind, however, that card processing volume INCLUDES tips (if you accept them) and sales taxes (if applicable).  Also, here are a few links with all sorts of information about Square Savings that should be helpful.

 

Getting Started with Square Savings

Square Savings Application Review FAQ

Square Savings FAQ

 

Let us know if you need anything else.  I’ve used Square Savings for a couple of years now and use it now to set aside money for my owner draw, to pay my monthly sales taxes, and for an emergency/slush fund.  I love it.

Chip

If my answer resolves your issue, please take a minute to mark it as Best Answer. That helps people who find this thread in the future.

Piper’s Ice Cream Bar, Covington KY USA
Website
Facebook
Click here to see a list of third-party apps I use to add functionality to my Square account!

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Square Champion

Best Answer

Hi @deesignsbydee

 

So, Square automatic savings is calculated based on card processing volume only, no cash.  Keep in mind, however, that card processing volume INCLUDES tips (if you accept them) and sales taxes (if applicable).  Also, here are a few links with all sorts of information about Square Savings that should be helpful.

 

Getting Started with Square Savings

Square Savings Application Review FAQ

Square Savings FAQ

 

Let us know if you need anything else.  I’ve used Square Savings for a couple of years now and use it now to set aside money for my owner draw, to pay my monthly sales taxes, and for an emergency/slush fund.  I love it.

Chip

If my answer resolves your issue, please take a minute to mark it as Best Answer. That helps people who find this thread in the future.

Piper’s Ice Cream Bar, Covington KY USA
Website
Facebook
Click here to see a list of third-party apps I use to add functionality to my Square account!

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Thank you so much for the information. I wish there was a way to set back for cash sales as well. 

 

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There sort of is, if you want to take the time.  I use this method to set aside sales tax using automatic savings.  Obviously, if I only use card sales to do that, I’ll end up short each month.  So to get it closer, I do this:

 

  1. Run the dashboard Payment Methods Report for the current year (or another suitable long period).
  2. At the top of the report, it will show you the split between cash and card payments.
  3. Now assuming you want to save 5% of all of your sales, you’ll want to use this calculation to approximate the savings amount of all sales just coming out of card sales.  This formula is, using x% savings: x * (1 + (cash% / card%))

I have a little spreadsheet that you can plug your numbers into and do the calculation for you, if you’d like it.  Let me know and I’ll reach out via private message to get it to you.

 

Otherwise, I am a step ahead of you here.  I have submitted a feature request to the banking team asking for the very thing you suggested — allowing us to include cash sales in the automatic savings, but to take it out of the card sales.  Fingers crossed they accept it!

Chip

If my answer resolves your issue, please take a minute to mark it as Best Answer. That helps people who find this thread in the future.

Piper’s Ice Cream Bar, Covington KY USA
Website
Facebook
Click here to see a list of third-party apps I use to add functionality to my Square account!

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Yes can you send me the spreadsheet you mentioned.  Ty

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@deesignsbydee I am sending you a private message with my email address.  Please send me an email and I’ll reply with the spreadsheet and instructions.

 

One thing I’ll say here for future sellers who happen upon this thread.  The spreadsheet gives you guidelines and approximations for the savings rate needed.  It won’t be exact and you’ll either have too much money saved at the end of the month, or you’ll have somewhat less than you need.  That’s why the spreadsheet gives you a savings range.  In any case, you might find that you need to change your savings rate occasionally for reasons like:

 

  • Your cash-to-card split is not stable — ie - one month you do 80% card sales and the next month you do 40% card sales. 
  • You collect more in card tips some months than you do in others (assuming you collect tips at all).

Just a heads up that you’ll need to monitor this and adjust your savings rates occasionally.

Chip

If my answer resolves your issue, please take a minute to mark it as Best Answer. That helps people who find this thread in the future.

Piper’s Ice Cream Bar, Covington KY USA
Website
Facebook
Click here to see a list of third-party apps I use to add functionality to my Square account!

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deesignsbydee59@yahoo.com

 

Thank you

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