[GNC] How to account for credit card fees
jeffrey black
beastmaster126 at hotmail.com
Fri Apr 12 03:57:33 EDT 2019
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.
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