We utilise the Square system for recording our sales of which around 1/3rd are settled in Cash.
With the API feed directly into QuickFile, the full sales history is filtering in successfully, with payment information, processing fees and subsequent bank transfers to our current account etc:
Whilst the transaction fees and the bank transfers are correctly being ‘Auto tagged’ by the system, I’m in a bit of a mess when it comes to the cash sales;
The below tagging rules, create sales invoices for each match and assign payment etc.
Once the physical cash has been deposited to the Post Office/Bank, our Current Account shows this as a ‘Bank Transfer’ from the Petty Cash account as a debit transaction.
The net result is that obviously these transactions do not correctly balance each other and we have an increasing credit on our Merchant Account, and an increasing -negative balance on our Petty Cash account.
What would be the best approach to take in terms of recording these cash transactions going forward?
Logically in my mind if we adjust the tagging of the cash deposits within the Current Account to reflect them as transfers from Square this should balance up, but it would mean that we’re then bypassing the default Petty Cash account - would there be any issue with taking this approach? Is there a better way?
Hi,
yes, you could just bypass the petty cash account. But I tag the cash income entered in square as a bank transfer to Petty Cash via a bank-auto-tagging-rule. And when the money arrives in my bank account, and shows up via bank feed in quickfile, it triggers another bank-tagging-rule which creates a money out transaction in the Petty Cash account.
Yes logically that’s how I’d imagine it working but in practice it can’t.
{Forgive me if I’m being a bit thick here… }
The method you’ve suggested wouldn’t balance out:
If that were possible, that would create both a Credit in the Square account & a Credit in the Petty Cash account, with only the subsequent bank account feed tagging then applying the corresponding Debit for the Petty Cash account.
To achieve that you’d actually need a 2 step tagging process - 1] Auto tag the income as a ‘Payment From Customer’ 2] Trigger a follow up to create a corresponding ‘Bank Transfer’ from Square to Petty Cash etc.
The tagging rules for a Bank Transfer only allow for a [From] value to be selected:
If the cash payments are recorded as coming in to the square merchant account, then the cash deposits to the current account would be tagged as transfers from the square account, not the petty cash account.
Not particularly, it just means that you don’t have a single “bank account” in QuickFile whose balance matches the cash you actually hold (since your cash and card payments are all jumbled up in one square merchant account). If you want to track cash on hand through the petty cash account but the square feed can only log them into the square account then you’d have to manually record a transfer from square to petty cash on the day you received the cash, then from petty cash to current account on the day you banked it.
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