Square cash payments-Bank deposit reconciliation

chasitypbw

Hello,

I deal in cash a lot with my business (yoga instructor). My students like to have receipts showing that they paid their money when they pay in cash. So I input the transaction into Square POS. Then I deposit the cash into my checking account. Well I have both square and my bank syncing with Wave so now those transactions are showing up twice. How do I reconcile this? Especially when I do not always deposit all the cash into the bank.

ShawnPack

We run a bakery and use Square. We ring up every sale, cash or card. I am not importing individual sales transactions from Square into Wave. My way may not be the best, but it works for me.
So I have credit card transactions automatically dumping into my business checking account. When Wave gets that deposit, I manually categorize it. I look at the deposit in Square and get the details. It'll show sales, sales tax, tips, discounts, etc. I figure since all of the individual transaction details are in Square, I don't need them in Wave. I download and archive the full data for my records, FYI.
So, how do I handle cash? Firstly, I made multiple cash accounts in Square. Not just Cash On Hand. I have one for my cash safe. I have one for each cash box. I record the cash into the appropriate cash account. I'll run a report in Square for a period of time and get the cash sales number. This could be for a day, week etc. So the entry in the Wave cash account will be something like "Friday Market Cash Sales". Most of my products are tax free. With no merchant fees it's just straight sales. When I deposit cash into my bank account it's a transfer from the cash account to the bank account.
FYI, I also keep spreadsheets tracking my cash boxes. Helps with auditing and finding missed sales. Like if we take cash and forget to ring it up. Happens when busy at the market.
I do sell taxable items as well. I download the transactions from Square and I use a pivot table in my spreadsheet to show me the collected sales tax in cash sales. Square keeps track of that. I make a quarterly Journal Entry adjustment transferring collected sales tax in cash from the Sales category to Sales Tax.
Hope this makes sense.