Generally, a powerful point-of-sale system is provided by Square for modern businesses. While integrating with QuickBooks Online, especially, it can become tricky to manage your accounting side without using the right tools. The most crucial point for a business owner is keeping the records accurate. And also adding the transactions from Square to QuickBooks Online is saving your time and reducing errors. In this blog, we’ll help guide you on the topic “how to record Square sales in QuickBooks Online.” Let’s allow us to begin this topic!
What do you mean by Square Sales?
Through a Square’s point-of-sale (POS) ecosystem, a total revenue can be generated, including payment processing, hardware, online checkout, and business management tools. This is known as Square sales. By enabling tracking of inventory, managing customers, and processing online orders, businesses were accepted through Square. Mostly, Square sales described either by merchants or the company’s own financial performance are made by using Square’s POS system for payment fees and services.
With this, you can see how the businesses use Square tools effectively to drive transactions, improve customer experience, and streamline operations. Overall, the economic contribution of both merchant activity and the platform is represented by Square sales.
Reasons While Entering Square Sales in QuickBooks Online Manually Becomes Problematic
While you are entering Square sales in QuickBooks Online manually, it becomes problematic because this is one type of risky and challenging option. Now, have a closer look at your operation and why that is not ideal to streamline and ensure accuracy for your business.
Time-Consuming
To enter the transactions manually for each Square in QuickBooks Online, a significant amount of time has already been taken to complete the processing of your business with a high volume of daily sales. Whether it’s a sale, a refund, or a fee, you can avoid it from becoming overwhelming quickly by paying individual attention to each transaction for processing.
Increased Risk of Errors
You can prone the manual data entry to human error with careful, detailed attention. Incorrect amounts, missed fees, or duplicate entries may lead your overtime to compound mistakes.
Your financial records can be distorted by Square processing fees at the end of the month for reporting and resulting in an inaccurate profit calculation.
Steps to Record Square Sales in QuickBooks Online
- Click on the “Free Trial” option of Link My Books to start.
- Create a path to make a connection between your Square and QuickBooks Online account.
- Use the “Guided Wizard” to complete the setup.
- Click on the option for choosing one out of “Automatic” or “Manual” for syncing.
- In the last step, click the button “Reconcile Square” to payouts with My Books sales entries.
How Link My Books Makes Recording Square Sales in QuickBooks Online?
To improve the financial health of businesses, link My Books to maintain compliance and gain deeper insights to streamline their accounting through Square sellers. In Square, My Books is directly interconnected to it for automating the import of sales data, refunds, and fees into QuickBooks Online. To keep your financial records accurate, this integration makes it easier by reducing manual entries, minimizes errors, and saving time.
Here are some steps, explained briefly, of what you need exactly, as given below:
Payout Reconciliation
To ensure all transactions are accounted for accurately, link my books that will simplify reconciliation by matching Square’s payout automatically with bank statements. You can reduce the time spent which are reconciling and make it a set process to forget.
Financial Analytics
Through linking My Books in real-time, you can get financial analytics and insights for the performance of your business. On sales trends, profitability, and cash flow, it provides you a complete detailed reports on it. You can stay competitive and responsive to market changes by making informed decisions quickly and keeping financial reports updated.
Industry Benchmarking
To compare your performance of your business, link My Books offers benchmarking tools to allow you against industry standards. From similar businesses, you can easily identify areas where you are doing well and where you need improvement by analysing anonymous data.
Instead of focusing on exact figures, it provides you with a clear image of how your business is performing relative to others by looking at percentage changes and trends to link My Books.
Tracking the Cost of Goods
The cost of goods sold (COGS) is essential for tracking and understanding the profitability of the products. As part of your Square payouts, link My Books will take the information of each account of the products sold. From your chosen inventory account to your chosen cost of goods sold account, they move their monetary value to sold account on the profit and loss statements. You can make a decision on your pricing, inventory management, and overall business strategy by tracking the COGS revenue alongside.
Accurate Tax Calculation
Especially when you operate in multiple jurisdictions by managing taxes across different regions, which may become complex. Through links, My Books tax calculations are automated and apply the correct rates based on where the sales occurred. With local tax laws, this automation makes you sure compliance and reduces the risks of errors and penalties.
Multi-Channel Support
Link My Books consolidates, if you are active on multiple platforms, like Shopify, eBay, or you’ve your own website, attach them with financial data from all these channels by providing a unified view of your finances. This is critical to generate financial reports across different platforms if you need to manage inventory and track profitability.
Benefits of Square Sales
There are some benefits of Square sales in QuickBooks Online that are discussed below. Follow the steps below to know the benefits, as in the following ways:
- Easy to Set Up and Use
- Multiple Payment Options
- Transparent, Simple Pricing
- Free POS Software
- Powerful Sales Analytics
- Inventory Management
Conclusion
At the end of the conclusion, we conclude that to keep a record of your financial reports, Square sales in QuickBooks Online is one of the best ways. With a Square’s point-of-sales, you can easily generate payment processing revenue. And we think that everything has already been discussed in the above. If you still have any doubts or are facing any type of issues, you may contact our QuickBooks support team.