Square journal entry templates

This article will detail the templates available for Square connectors.

Square is a powerful tool for digital payments, point-of-sale, banking, eCommerce, and much more.  Any business owner using Square should know how to properly send Square data to their accounting platform.  

Bookkeep allows Square users to automate accounting for this data via our Square Summary and Square Deposit journal entry templates.  The following definitions of each Square template will help you decide what works best for your business:

Square Summary

  • Gross Sales - Credit that represents gross revenue before discounts and maps to an income account.
  • Discounts - Debit that represents any discounts on the orders which should also map to an income account.
  • Refunds - Debit transactions that represent returning product purchased previously. This is also mapped to an income account.
    • PLEASE NOTE: When a refund is done to a different payment method versus the original payment method, Square does not share that information. For example, if an original payment was done with a Visa card but refunded to a gift card, Square indicates that the refund was to the Visa card. We have alerted them to this issue to have it addressed.
  • Gift Cards Issued - This Credit is the value of gift cards sold and should map to a Liability account.
  • Sales Tax Collected - This Credit is all sales tax collected on all transactions.
  • Gratuity Collected - This Credit represents all tips collected and should map to a liability account (or if using Square Payroll it is set up as an expense account). Or you have the option to map to the same account where your payroll provider pays tips out of.
  • Square Balance - This Debit is the clearing account for the total collected from credit cards before fees. It should map to an asset account which will be zeroed out by the square deposit journal entry.
  • Square Cash Balance - This is a tender account is the value of the total collected from cash. It should map to an other current asset account.
  • Square Other Tender Balance - This Debit is a tender account is the value of the total collected from other tender types. It should map to an other current asset account.
  • Gift Tender Total - This Debit This line is the total gift cards used as a tender. Use the same account as above for Gift Card Issued.
  • Partial Payment Deferred Revenue - If you use Square Invoices, this Credit will capture any partial payments as liabilities. Square recognizes the sales when fully paid.

Square Deposit

  • Square Balance - This Credit is the expected amount from Square credit cards before fees and loans are taken out. Do not map this to your checking account, it should map to the same Square Balance account from the Square Summary template
  • Bank Account Deposit - This Debit is the bank account set up in Square to receive your deposits. This maps to the same checking account as you have set up in Square.

  • Fees Reduction - This Debit is the Square Processing Fee which can map to a Cost of Good Sold account. If you like you can use an expense account.
  • Loan Payment Reduction - If you have a loan from Square the payments come out of your deposits here. This Debit should map to the Other Current Liability account for your Square Capital Payment
  • Other Deposit Withheld - This Debit is the Square Instant Deposit Fee which can map to an expense or Cost of Good Sold account. Since it is like a bank fee you can use expense.
  • Subscription Fee - A Debit that allows Square users to have their subscription fee removed from deposits. Map this to an Expense type account
  • Square Debit Card Spend - This Debit represents card spend transactions from your Square Debit Card
  • Square Savings - If you have a Square Savings Account these Debits are the transfers made to it from your collected proceeds. Map this to your Square Savings account.

Start your free 14-day trial of Bookkeep and see how easy it is to post Square summaries and deposits to your accounting platform.