Those who use Square to complete their customers’ transactions know that there is a charge for using Square for every transaction. It is possible to enter these costs to balance everything at the end of the month in Collabox. We will explain how to do this here; it’s easier than it looks.
You should first think of Square as a separate account, just like your company’s bank or cash account. You therefore need to create a Square transactional account in Collabox, with a Square provider.
First, create the supplier, then the account.
Click on the icon Accounting of the horizontal menu. Then click on Suppliers in the vertical menu . Collabox vertical menu, section Accounting Click on Add a supplier , at the top of the page. Page List of suppliers Name your new supplier “Square”, enter a number that will be specific to it, then click on Record . Page Update a supplier Your Square provider will be created. Collabox horizontal menu Then click on Transactional accounts in the vertical menu . Collabox vertical menu, section Accounting At the top of the page, follow the link Add a transactional account . Page Transactional accounts Name your new account “Square”, select the supplier Square, then enter a number that will be unique to it and the opening balance. Page Add a transactional accountHow to create a supplier
Collabox horizontal menu
How to create a transactional account
Click on the icon Accounting of the horizontal menu.
Next, define a Square budget item.
Click on the icon Accounting . Collabox horizontal menu Click on Budget items in the vertical menu. Vertical menu, section Accounting Add a budget item using the link at the top of the page. Page Budget items Write “Square” as the job name, choose the type Expense (Debit) , then click Save . Page Updating a budget itemHow to define a budget item
Once you have completed these steps, you are ready to post transactions with Square in Collabox. For example, consider a bill for $ 100.01 that a customer pays you entirely by credit.
As you know, Square automatically transfers the amounts to your account, but charges the fees along the way. In order to enter your customer’s payment as well as transaction fees in Collabox, you must first make a payment into the Square account of the total amount of the invoice. – or $ 100.01 for this example.
Page Make a payment
The invoice will therefore be considered paid and will no longer appear in your accounts receivable. However, the money is in the Square account, not your business bank account. You must therefore make a payment from the Square account to your checking account in the amount you have left after the transaction fees.
Suppose here that the fee is 3 %. You should then transfer $ 97 to your checking account.
To do this, click on the icon Accounting of the horizontal menu.
Collabox horizontal menu
Then, go to the page Transactional accounts from the vertical menu .
Collabox vertical menu, section Accounting
Click on the Square account, and go to the tab Statements . Then click on Add indent .
Page Square Account Statements
Select the direct deposit from the Square account to your checking account, in the amount of $ 97 (in the case of our example) and save the entry.
Page Add an entry to the general ledger
Finally, you must enter Square’s transactional fees as an expense in Collabox. You’ll enter these as a Square vendor payout, which you’ll pay through the Square payment method.
Still in the accounting section of Collabox, click on Disbursed .
Vertical menu, section Accounting
Click on Add a disbursement .
Page List of disbursements
Select the Square supplier, enter the invoice number, the project, the Square budget item and the total amount corresponding to the charges, which is $ 3 in our example. If necessary, use the tax reverser . Don’t forget to record your disbursement!
Page Add a disbursement
To continue, click on the disbursement that you have just recorded, then go to the tab Payments . Click on Add payment .
Page List of disbursement payments[numéro du déboursé]
Enter the amount corresponding to the disbursement, choose the Square disbursement and complete the payment by clicking on Record .
Page Add payment
Everything should swing now! Note that you don’t need to count the fees for each transaction. Since Square keeps track of them, you could very well enter them only once a month.
Questions? Contact us!