Square Up

[john1]

Did my first keyed in transaction with Square today. Then my phone rang and it interrupted the transaction at the sign screen.

I'm reading that this will make a pending transaction on their statement but it will disappear in 1-5 days, Is this right?

 

[David Wright]

After one week with Square, so far so good.
Two charges $900 and $400, both in my account in three days. Fee is taken off the top so no surprises later on and all the bs that comes with the others.

I had just closed my old service and got nailed for a $90 early cancellation fee. Also two high fees, one for my yearly compliance fee that is supposedly mandated everywhere for $53.
Consider that good riddance money and a final hard knocks education fee for me. I hope Square doesn't pull this too.

yeah, scratch Paynet.

 

[onthego signguy]

I use propay have Bin for several years no problems, they just introduced the iPhone iPad app that works with the swiper in the earphone jack. It's sweet and even has a lace for the customer to sign the transaction using there finger or the stiles I have, I use it with the iPad and costumers love it

 

[jdoug5170]

I have been using ProPay for a few years with no complaints, until Square came on the scene. No annual fee, instant approval on transactions, and a lower percentage fee. No brainer for me. Now propay has released their smart phone reader and while it looks good, there is still the $79 annual fee, a $39 device purchase fee and I'm not sure what the percentage will be (did not look real hard for it).

Square for us and a I-Phone as it uses less data for the transactions than Droid(at least that is what the phone store said). I've had access to wireless everywhere I've needed it so far so no data charge.

Nice to get a break for a change as a small business taking it to the streets.

Doug

 

[tattoo.dan]

I have used square for a few months now and love it.

 

[CES020]

Anyone using square up with quickbooks as your accounting system?

On our normal merchant account, it takes the full amount in and charges us an amount, in a bill, at the end of each month.

However, with square up, they take the money out before it hits the bank.

So before we could take in $100 charge, apply it to the invoice at $100, and deposit $100 and it all worked out perfect. At the end of the month, pay the merchant account bill and it's done.

Now, if someone pays you $100, maybe $96 and change gets deposited into the account. So how do you reconcile that with quickbooks? The $96 brought into the account doesn't match the $100 invoice.

I know it can be easily done through various accounts and transactions, but our person that handles all that stuff struggles with quickbooks. They own the company, so it's not like we can replace them He'll do whatever is the right way to do it, but right now, he's asking me for help in understanding how to manage that all through QB.

Any suggestions? Anyone else work through this yet?

 

[Techman]

They use none of these techniques overseas.

Most use a smart phone.
In Japan...
To order from Mc's Pull up the menu on the phone screen,.. send the order, goto Mc's to pick up window. Show the phone screen to the reader. order comes out already paid. They charge it to the phone bill.

Want a plane ticket? pull up the flight menu. select the flight. Goto Airport and show Id to clerk. Show phone to reader. Done! Goto gate, show phone to gate reader. Done.

Street vendors? Pull up your ID Q code. Show phone screen to his reader.. approve the transaction.. done..

There is no paper used at all.
Your smart phone is the currency.

 

[David Wright]

Anyone using square up with quickbooks as your accounting system?

On our normal merchant account, it takes the full amount in and charges us an amount, in a bill, at the end of each month.

However, with square up, they take the money out before it hits the bank.

So before we could take in $100 charge, apply it to the invoice at $100, and deposit $100 and it all worked out perfect. At the end of the month, pay the merchant account bill and it's done.

Now, if someone pays you $100, maybe $96 and change gets deposited into the account. So how do you reconcile that with quickbooks? The $96 brought into the account doesn't match the $100 invoice.

I know it can be easily done through various accounts and transactions, but our person that handles all that stuff struggles with quickbooks. They own the company, so it's not like we can replace them He'll do whatever is the right way to do it, but right now, he's asking me for help in understanding how to manage that all through QB.

Any suggestions? Anyone else work through this yet?

I know it isn't the right way, but I just write the invoice for the amount Square leaves me. Not a long term solution but reconciling was just as you said.

 

[njshorts]

Anyone using square up with quickbooks as your accounting system?

On our normal merchant account, it takes the full amount in and charges us an amount, in a bill, at the end of each month.

However, with square up, they take the money out before it hits the bank.

So before we could take in $100 charge, apply it to the invoice at $100, and deposit $100 and it all worked out perfect. At the end of the month, pay the merchant account bill and it's done.

Now, if someone pays you $100, maybe $96 and change gets deposited into the account. So how do you reconcile that with quickbooks? The $96 brought into the account doesn't match the $100 invoice.

I know it can be easily done through various accounts and transactions, but our person that handles all that stuff struggles with quickbooks. They own the company, so it's not like we can replace them He'll do whatever is the right way to do it, but right now, he's asking me for help in understanding how to manage that all through QB.

Any suggestions? Anyone else work through this yet?

register the deposited funds as POS-full amount. Enter a bill and payment (daily/weekly/etc) for the amount square took for processing.

 

[CES020]

register the deposited funds as POS-full amount. Enter a bill and payment (daily/weekly/etc) for the amount square took for processing.

I think that's where the problem comes in. You have to deposit the amount in the bank, and when you do, it's not for the amount that matches the invoices. You receive the payment in full against the invoice, I get that. Now, those funds are "undeposited funds" at the full amount. If you receive them into the bank account at the full amount, then you're stuck with money that you said you put in, but you never did, then you have to make up a "fake" bill for the amount to get it all to work out, from best I can understand it.

It's not going nearly as smoothly as I had hoped

I agree with you, that's the way around it, but seems like a lot of work to get around it, when our normal merchant account doesn't have this issue.

 

[njshorts]

I think that's where the problem comes in. You have to deposit the amount in the bank, and when you do, it's not for the amount that matches the invoices. You receive the payment in full against the invoice, I get that. Now, those funds are "undeposited funds" at the full amount. If you receive them into the bank account at the full amount, then you're stuck with money that you said you put in, but you never did, then you have to make up a "fake" bill for the amount to get it all to work out, from best I can understand it.

It's not going nearly as smoothly as I had hoped

I agree with you, that's the way around it, but seems like a lot of work to get around it, when our normal merchant account doesn't have this issue.

i'm just spitballing... not a qb genius, not an accountant... that's just how i'd handle it until my accountant gets her hands around my neck.

 

[john1]

All you have to do is write the transactions fees off as a expense, Same thing as with the Paypal fees.

 

[CES020]

All you have to do is write the transactions fees off as a expense, Same thing as with the Paypal fees.

Yeah, it's not the issue of whether it's an expense I'm trying to help figure out. It's the actual process of how to do it in QB.

In QB, from best I can tell and my limited experience with it, you have a flow you need to follow that takes you from beginning to end.

Close to the end, you have 2 steps to complete. One is to receive the payment against the invoice. That step automatically takes the money brought in against the invoice and puts it in an "Undeposited Funds" section. You have no control over the amount at that point. I think you may have a choice, I don't know.

You may be able to break out the fees at that very point so what was received against the invoice is right and then the fee is subtracted out BEFORE it goes into the deposited funds account. Once it goes over to that, I think you have no choice but to create a line item and expense it.

I'm fuzzy on the last part, which is where I think you MAY be able to resolve this, which is while it's still in the "Undeposited Funds" account. Can you break that out at that level and divide the payment into two accounts?

I haven't used QB in a couple of years now and I don't do it now, so I'm just trying to figure it out so I can help the person that does it.

 

[njshorts]

initial thought is an account that the square fees are 'deposited' into and a bill is paid, but it's another step... and probably not the best way to do it.

 

[Kevin-shopVOX]

Yeah, it's not the issue of whether it's an expense I'm trying to help figure out. It's the actual process of how to do it in QB.

In QB, from best I can tell and my limited experience with it, you have a flow you need to follow that takes you from beginning to end.

Close to the end, you have 2 steps to complete. One is to receive the payment against the invoice. That step automatically takes the money brought in against the invoice and puts it in an "Undeposited Funds" section. You have no control over the amount at that point. I think you may have a choice, I don't know.

You may be able to break out the fees at that very point so what was received against the invoice is right and then the fee is subtracted out BEFORE it goes into the deposited funds account. Once it goes over to that, I think you have no choice but to create a line item and expense it.

I'm fuzzy on the last part, which is where I think you MAY be able to resolve this, which is while it's still in the "Undeposited Funds" account. Can you break that out at that level and divide the payment into two accounts?

I haven't used QB in a couple of years now and I don't do it now, so I'm just trying to figure it out so I can help the person that does it.

The correct way to do this is as someone mentioned is enter the square or any other merchant fees as an operating expense. Your payment is still a payment for the full amount. You should not be editing a payment transaction to be any thing less than the payment. If you edit payments to reflect an expense then you are not accounting for all of your expenses against your sales. (p&l statement) Yes your payments go into undeposited funds and yes that balance will reflect a certain amount over than what is actually deposited when you deposit those virtual funds in quickbooks. However as you enter all expenses as paid that balance should be accurate. In all reality quickbooks is funny money and you have to realize that the virtual account and bottom line are only accurate after all expenses and payments are entered. How often you choose to bring that current is up to you.

 

[FireSprint.com]

Yeah, it's not the issue of whether it's an expense I'm trying to help figure out. It's the actual process of how to do it in QB.

In QB, from best I can tell and my limited experience with it, you have a flow you need to follow that takes you from beginning to end.

Close to the end, you have 2 steps to complete. One is to receive the payment against the invoice. That step automatically takes the money brought in against the invoice and puts it in an "Undeposited Funds" section. You have no control over the amount at that point. I think you may have a choice, I don't know.

You may be able to break out the fees at that very point so what was received against the invoice is right and then the fee is subtracted out BEFORE it goes into the deposited funds account. Once it goes over to that, I think you have no choice but to create a line item and expense it.

I'm fuzzy on the last part, which is where I think you MAY be able to resolve this, which is while it's still in the "Undeposited Funds" account. Can you break that out at that level and divide the payment into two accounts?

I haven't used QB in a couple of years now and I don't do it now, so I'm just trying to figure it out so I can help the person that does it.

In QB, this is how we do it...

When you go into record deposits, on the next line, put in a negative amount for the merchant fees and tie it to your "Merchant Fees" account.

Let me know if that makes sense. I have attached a screen shot for you.

 

[CES020]

Perfect, that's the answer I was looking for! I'll look over his shoulder next time he does the transaction and see if we can make it look like that. That would solve the problem exactly!

Thanks!

 

[john1]

Yep, told you.

Just put it as a expense like you would pay pal fees, ebay fees etc

Been doing it for years and everything has worked out great with my accountant.

 

[njshorts]

Finally listening to the good advise on this subject... Just ordered a square, switching our other processing to paypal and dropping intuit. Took a while for my brother to come around, but when he noticed that 99% of our transactions last month were checks and that we paid 40$ in fees... decision became easier.

 

[john1]

You can also pick them up at Walmart, They are $10 at Walmart and are the Square brand.