Square Register is a great POS system for small businesses. I had a lot of trouble trying to find ways to accurately enter my Square Register transactions with QuickBooks Online. Below is the best and simplest way I have found to use the two together.

Summary

All square-related income will be considered uncategorized income into the checking account. Even if you have a cash drawer, we will not use a cash drawer account in QuickBooks for the sake of simplicity. Once a month (or whenever necessary) we can reconcile Quickbooks with Square to know what is due for sales tax and consignment vendors.

Bank Deposits (Cash)

  1. Hit the +(plus sign) on the top center and go to Bank DepositsScreen Shot 2015-10-04 at 7.24.13 PM
  2. Select the checking account (top left).Screen Shot 2015-10-04 at 7.38.59 PM
  3. Select the date the cash will be deposited
  4. In Add New Deposits, under Received From select Square Clients
  5. Next, the Account is Uncategorized Income
  6. Next, the Description is Cash Sales [date range since your last deposit]
  7. Next, the Payment Method is Cash
  8. (No reference number)
  9. Next, the Amount is the amount being deposited into the bank
  10. In the Memo write Cash Sales [date range since your last deposit]
  11. Finally, Save and Close

Mobile Deposits (Checks)

Same as the Bank Deposit (Cash) above, except

  1. Hit the +(plus sign) on the top center and go to Bank DepositsScreen Shot 2015-10-04 at 7.24.13 PM
  2. Select the checking account (top left).Screen Shot 2015-10-04 at 8.34.09 PM
  3. Select the date the cash will be deposited
  4. In Add New Deposits, under Received From select [Customer on the check]
  5. Next, the Account is Uncategorized Income
  6. (Description can be blank)
  7. Next, the Payment Method is Check
  8. The Reference Number is the check number
  9. Next, the Amount is the amount being deposited
  10. In the Memo write the product or service which is being paid
  11. In the Attachment attach a picture of the check
  12. Finally, Save and Close

Credit Card Income

There is no manual entry for credit cards. They will automatically be downloaded and it is clearly known that it is credit card income from Square.

  1. On the left side menu click Transactions->Banking
  2. Anything with Square P L as the description is credit card income.
  3. Click on this transaction
  4. Select Square Clients as the customer
  5. Choose Uncategorized income as the account.
  6. Hit Add

Monthly Reconciliation

This section is being worked on

On a monthly basis, Quickbooks should be reconciled with Square so that consignment sales and sales tax match.

Sales Tax

  1. Log onto Square
  2. Click on Sales on the left side menu
  3. Change the date range to Last Month (or whichever relevant dates)
  4. Click on Taxes on the left side menu
  5. Note the amount of sales tax collected
  6. Log onto Quickbooks Online
  7. Hit the + at the top center of the screen and go to Journal Entry
  8. Change the date to the last date of the month you are reconciling
  9. On Line 1 – Select Uncategorized income as the accountScreen Shot 2015-10-27 at 6.53.33 PM
    • In the Debits column enter the amount of sales tax from the report we ran on Square
  10. On Line 2 – 
    • Select your Sales Tax account as the account. (It should be a liability account)
    • In the Credits column enter the amount of sales tax from the report we ran on Square
    • For Name  enter your sales tax agency
  11. For the Memo Write “[Month Year] sales tax via Square Register Transactions”
  12. Save and Close

Consignment Sales

  1. Log onto Square
  2. Click on Sales on the left side menu
  3. Change the date range to Last Month (or whichever relevant dates)
  4. Click on Category Sales on the left side menu. (Assuming that you have your consignment vendors in their own category)
  5. Find the amount due to a vendor by multiplying the total income of their category by the percentage they will receive. (Ex: $50 in total sales X 70% in consignment means that they will receive a $35 check)
  6. Note all the amounts owed to each vendor
  7. Log onto Quickbooks Online
  8. Hit the + at the top center of the screen and go to Journal Entry
  9. Change the date to the last date of the month you are reconciling
  10. On Line 1 – 
    • Select Uncategorized income as the account
    • In the Debits column enter the amount owed to individual vendor from the data we got from Square
  11. On Line 2 – 
    • Select your Owed to Vendor account as the account. (It should be a liability account)
    • In the Credits column enter the amount owed to individual vendor from the report we ran on Square
  12. On the Memo note the date range (month and year)
  13. Repeat for each consignment vendor
  14. Save and Close
  15. Now would be a great time to write checks to your consignment vendors.