Hi. I am running a Square POS/Till in my shop and each day I’ve been inputting my daily takings in the daily takings section of quickfile as a single entry to include cash and card.
When trying to tag this with my bank feed though I’ve got a couple of issues.
Square puts card payments into my business account (Natwest) which aren’t going to match the daily takings as it’s just the card, and the cash as there’s less gets banked once a week as a separate entry.
I’m also a sole trader so presumably whether the cash gets banked or not isn’t so important?
When coming to tag the payments in my bank account though, I’m thinkink if I was to tag the card or cash banked then surely it’s going to create an extra amount on top of the daily takings so will make the figures incorrect.
What should I log these two entries as so they won’t affect the turnover, but still get entered into the system?
You need to create an extra “merchant” bank account in QuickFile to represent the card takings that Square are holding on your behalf. When you enter your daily takings you’d then put the cash part in as cash, using the “petty cash” bank account, and the card part through as the Square merchant account.
Cash is then straightforward - when you deposit cash at the bank you just tag it as a transfer from petty cash to current account, so at any given time the balance of the petty cash account in QuickFile should equal the cash you have in the till that you’ve not yet banked. If you use any if the cash to pay for purchases instead of banking it all then you can mark those purchases as paid from petty cash.
For cards, again when the money from Square hits your current account you tag that as a transfer from the Square merchant account. This will be less than the amount you actually took because Square have deducted their fees. To account for that you create a purchase once a month (or whatever makes sense) with Square as the supplier, for the total fees that they have deducted and mark that as paid from the merchant account to offset the excess balance.