Why your Square deposit doesn't match your sales
Square deposits are net of processing fees and refunds, and cash sales never reach the bank. Here is how to split each deposit into sales, fees, refunds, tips and cash for QuickBooks or Xero.
The usual reasons
- Processing fees are taken out before the deposit.
- Refunds are netted against later sales.
- Cash and other tenders appear in your sales report but never in the deposit.
- Tips and sales tax are in the deposit but aren't your income.
- Timing: sales late in the day can land in the next deposit.
The fix: one entry per deposit
- In Square: Transactions, choose the date range and export Transactions CSV (the Transfers export also works for net figures).
- Drop it above. PayoutSplit groups transactions by deposit and splits gross sales, fees, refunds, discounts, sales tax, tips and cash (which goes to Undeposited Funds).
- Download the journal for QuickBooks Online, QuickBooks Desktop or Xero, import it, and match each deposit in your bank feed.
Add your bank CSV to see which Square deposits arrived and which are missing.
FAQ
Where do Square cash sales go?
To Undeposited Funds (or a cash account) until you deposit the cash. PayoutSplit puts them on their own line, so the bank line still equals Square's deposit.
Is it really private?
Yes. Your files are read and processed by JavaScript running in your browser tab; their contents are never sent over the network. You don't connect PayoutSplit to Stripe, PayPal, Square, Shopify or your accounting software, so there's no access to revoke later.
Which processors are supported?
Stripe (payout reconciliation itemized and balance change from activity reports), PayPal (activity download, English headers), Square (Transactions CSV and Transfers CSV) and Shopify Payments (transactions export). Bank files from any bank can be added for deposit matching.
What does a payout journal entry look like?
Debit your bank for the deposit, debit processing fees, refunds and chargebacks, and credit gross sales (plus sales tax and tips payable when the export has them). The entry always balances, and the bank line equals the deposit to the cent.
I already record sales another way. Will this double count?
Only if you leave Sales income pointed at your real income account. If your POS or store already books each sale, set Sales income to the clearing or Undeposited Funds account under Your account names — the journal then just moves the net to the bank and records the fees.
What if a payout doesn't add up?
When the export includes the payout row (Stripe balance report, Shopify, PayPal withdrawals), PayoutSplit compares it with the sum of the transactions. A difference is flagged and booked to the clearing account so you can investigate instead of importing a wrong number.
What's free?
Every export format for up to 10 payouts per download, one processor file plus one bank file at a time. No account needed. Pro removes the limit and lets you combine several exports and processors in one go.