Dealing with Incoming Transactions from iZettle

Accounting
1

Hi Guys,

We currently use iZettle to take Card Payments in Store and at shows around the UK. Monies Are transferred direct into our Business account which then is imported into QF.

However, How would I set-up Izettle in the system? As a Supplier or Client?

Tanks for your help and sorry if this question sounds a little stupid Still learning my way through the system.

2

I’ve never actually heard of iZettle, but I’m assuming they charge a transactional fee?

If that’s the case, I would set up a separate bank account (like you would for PayPal, Stripe etc.) and then only the fee would be paid to iZettle as a supplier.

3

That would be case of opening opening another bank account called iZettle , same procedure as handling any other payment gateway e.g gocardless, paypal or stripe

4

Hi guys,

The iZettle Payments are automatically paid into our HSBC Current Business Acccount anyway so Surely I don’t need another bank account. I just need to create a supplier and Attach any fee to them?

Also, What about the credit side of the transaction. What would I tag this too? I guess a New Client called ‘iZettle Customer Payment’. ?

Regards
Mark

5

You need to create another bank account Izettle otherwise your debtors wont settle in full amount from hsbc account receipt. You will tag sales invoice in full to iIz account, then do interbank transfer from iz to hsbc, any balance left over will be charges of iz which you can either do it on invoice basis or monthly basis to make iz balance nil

6

Whenever a merchant is paying you a lump sum for a bunch of transactions and deducting their fee you do need a separate account for handling this (You’d add this in Quick File as a merchant account called iZettle). This is how most payment systems work, e.g. PayPal, Stripe, GoCardless etc

The procedure is as follows:

.

  • Pay all your iZettle sales GROSS into the iZettle merchant account.
  • When you receive a lump payment from iZettle (usually for a bunch of invoices), tag this as a transfer from the iZettle merchant account to your current HSBC account.
  • At the end of the month the account will be in credit proportionate to the fees you’ve paid to iZettle, enter a money out transaction to bring the iZettle account back to zero and tag as a purchase payment to iZettle under ‘bank charges’.
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7

Thank you for your help guys.

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