[GNC] How to account for credit card fees

[jeffrey black]

On 4/12/2019 1:28 AM, Andres Aviles wrote:
>     Hello all -
>
>     This is my first post.  So far I love GnuCash !
>
>     I run a small business and accept credit/debit cards using the Square
>     app.  They take out the fees before they deposit the money received. I
>     have imported my credit union statements which includes the deposits
>     made by Square. But how do I account for these fees in GnuCash that
>     Square takes out before the deposit ? I'm using version 3.5.1 right
>     now.
>
>     Thanks.
>
>     Andy A.
>     ana5914 at gmx.com
>     "Try to be a rainbow in someone's cloud" Maya Angelou
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You'll have to pardon me if I get tongue twisted.  I'm operating on a 72 
hour straight crunch time on taxes.

The fees are just an expense of doing business, unless you are charging 
your client a swipe fee (that can get messy real quick).

In its very simplest form, just create an expense account 
(Business_expense:SQfees).  The fees will almost always go from your 
bank account to theirs (funny how you never get to bill them for your 
time swiping the card).

It gets a little trickier if you need to tie the fees to an exact 
purchase/return.  That will require a split transaction (using the same 
accounts), which you will more than likely have to do manually.

If you use a tax preparer then I would ask them how they would like it 
set up.  Especially since those fees are possibly a legitimate 
deductible expense on your taxes depending on your pricing structure.

-- 
--JEffrey Black M.B.A.