Great video!! I am encouraging my client to use this process exactly and will be sharing this tutorial with them to give them an overview of the process. Currently using the Clover integration and it is sending transactions everywhere they are not supposed to go..LOL
I'm glad to hear this! (not that the integration is sending transactions everywhere they are not suppose to go), but that this was able to help you and your client out! Thanks for watching/recommending my videos and thank you for this feedback
It depends on how they need to be handled with taxes depending on how your incorporated and how they are being disbursed via payroll (if they are) so it’s hard to give a definitive answer via UA-cam messages without a deeper dive. I’ve handled clients in a few different ways, sometimes with straight Tips Liability account being increased and decreased and sometimes a seperate tips income and tips paid out expense account. Whether liability or income will determine how it is set up in your Clover Journal Entry Template.
Excellent step-by-step instruction. Very well explained. Thank you so much. Makes complete sense and builds off templates I've been guided through previously. Very helpful!
I would love to see a video that show me how to reconcile this single journal entry with the daily deposits to my checking account. I usually make a daily sales entry and match them to the bank deposit when I reconcile. However, one sales entry like you show in this video would save me so much time. Is there a way to use the journal entry to do the monthly reconciliation?
That is a great idea for a video, I have added it to my "to create" list! Ideally, what happens is there is some balance in the Shopify clearing account at the end of the month. Then, what I'll do is create some transfers in the Bank Feed out of the clearing account for the first few days of the following month. Then, let’s say there’s a $500 balance in the shop clearing account as of 1/31/24, then you create some transfers out of the clearing on 2/1/24 for $400 and 2/2/24 for $600, then open the register again for the shop clearing account and change the dates from 1/1/24 - 2/2/24, then you’ll see that on 2/2/24 the balance in the account is $0, showing that the balance is correct and clearing as it should. So, once I see this, then a create a reconciliation as of 1/31/24 for ending balance $1,000 as I now know it is correct. It’s not always as clean as this (hence the need for a separate video), but this is just a quick example of what it could look like
I am learning so much from your videos! Thank you for making and posting them. My client has Clover integrated with Quickbooks and the Sales number it pushes through each day includes the Sales Tax collected, for some reason. How do you suggest I separate out the sales tax collected from the daily sales number?
Thank you for this feedback and I’m glad I’ve been able to help! This is exactly why I prefer the method shown in the video vs direct integrations. Honestly, what I would do is stop the integration, enter one bulk Journal Entry to “force” the numbers to actual and then use this method via the monthly Journal Entries moving forward. I’m guessing (but can’t say for sure at this time without knowing more) that adjusting Journal Entry will be a debit to sales and a credit to sales tax liability. The amount will be for that month’s sales tax collected. This will essentially lower the sales and increase the sales tax liability. If you did want to keep the integration as-is, you could also always just add in this Journal Entry every month to make this correction.
very informative, we are a medical business selling retails products, sometimes under a prescription, sometimes not prescribed, the same item can be taxable if not prescribed, and non taxable if bought with a prescription. moreover on the same bill, someone could have items with taxes and some without, for instance 600$ total but only 1.27$taxes. Do you have any advice so we can have clear reports at the end of the month on how much we owe to our dear government? appreciated
Given that the items are set up correctly in Clover and ran correctly at the POS stage, I would say that you should be able to gather the information you need using a combination of two reports in Clover: the "Item sales" report under Reports, which can also be sorted in various ways and exported to Excel if needed and also the "Taxes" report found under Finances. Thank you for watching!
Thank you, glad to help! For that, I usually just lower the sales portion by that amount to just utilize a cash-basis way of handling (not counting the income until it is paid for)
Question, how do you handle credit card transactions and the actual deposit of the credit card funds to bank account when completing the monthly sales JE?
The total amount of cc payment collected is entered via the journal entry into the clearing account in a given time frame and the daily deposits are handled in the bank feed by clearing out that clearing account
Hello! I have a question, hopefully you are able to answer. I added the sales as directed in the video, my issue is that, when I open the statement for the month for debit/credit card transactions there is an additional fee that is charged and comes out of the bank account separately. Now I’m noticing that the clearing account is overinflated because it is not accounting for that additional fee. What is the best way to correct that? Thank you!
I don’t think the Clover Clearing account should be overinflated if the fees are taken out via your bank account separately as long as you are not entering the fees during the sale entry. You would just account for the fees during the bank debit.
Yes, exactly. I would set up a separate clearing account assuming that it is a separate depositing channel into the bank account. The fee handling would be determined by how the fees are taken. If they are taken before payouts, then the fee expense will be entered in the sales entry journal entry stage and the debit amount into that clearing account will be calculated “net fees”. If they do monthly withdrawals out of the bank account to collect the merchant fees, then the amount in the clearing account at the sale entry journal entry will be “gross fees” and the fee expense not entered until the bank credit happens.
So how do you handle this when clover creates invoices in QBO, then posts the sales to undeposited funds. Then you have to receive the payment against the invoice. But then in the bank feed has the deposits, basically doubling income.
It sounds like you may have a Clover - QBO integration set up, which is a different workflow so I can’t speak for that. However, based on the description you made, it sounds like you would in the Bank Feed for those Clover deposits create transfers from Undeposited Funds to the Bank Account, that way you would not be doubling sales and would be clearing out the Undeposited Funds account. You would then audit the Undeposited Funds register to make sure the ins and outs match. Or, depending on how the invoices are structured, you could then match the deposits as “payments” to the open invoices which could just do the same effect of lowering the undeposited funds account and not doubling income. You would need to run Transaction Journals on the received payments to see what the actual debits and credits are being made to verify whether this is what is happening or not. This is generally why I usually stay clear of direct integration unless you can figure out during each stage if the debits and credits happening in the background are exactly what they should be based on how the integration is set up. Hope this helps, but again, this sounds like a direct integration attempt which is different than the outline of this video which forgoes any direct integration need so it’s hard for me to say exactly how to handle this without taking a deeper dive into the details.
Great video!! I am encouraging my client to use this process exactly and will be sharing this tutorial with them to give them an overview of the process. Currently using the Clover integration and it is sending transactions everywhere they are not supposed to go..LOL
I'm glad to hear this! (not that the integration is sending transactions everywhere they are not suppose to go), but that this was able to help you and your client out! Thanks for watching/recommending my videos and thank you for this feedback
Wow! Thank you for this incredible video! You have taught me so much!!
This video has been very helpful. I am wondering the proper way to enter the tips. The way I have done it doesn't seem to reflect properly. Thank you.
It depends on how they need to be handled with taxes depending on how your incorporated and how they are being disbursed via payroll (if they are) so it’s hard to give a definitive answer via UA-cam messages without a deeper dive. I’ve handled clients in a few different ways, sometimes with straight Tips Liability account being increased and decreased and sometimes a seperate tips income and tips paid out expense account. Whether liability or income will determine how it is set up in your Clover Journal Entry Template.
Excellent step-by-step instruction. Very well explained. Thank you so much. Makes complete sense and builds off templates I've been guided through previously. Very helpful!
Glad to help. Thank you for watching and thank you for this feedback!
Great video! Would like to know if you have any tips or tricks for getting the COS from Clover to QBO>
I would love to see a video that show me how to reconcile this single journal entry with the daily deposits to my checking account. I usually make a daily sales entry and match them to the bank deposit when I reconcile. However, one sales entry like you show in this video would save me so much time. Is there a way to use the journal entry to do the monthly reconciliation?
That is a great idea for a video, I have added it to my "to create" list! Ideally, what happens is there is some balance in the Shopify clearing account at the end of the month. Then, what I'll do is create some transfers in the Bank Feed out of the clearing account for the first few days of the following month. Then, let’s say there’s a $500 balance in the shop clearing account as of 1/31/24, then you create some transfers out of the clearing on 2/1/24 for $400 and 2/2/24 for $600, then open the register again for the shop clearing account and change the dates from 1/1/24 - 2/2/24, then you’ll see that on 2/2/24 the balance in the account is $0, showing that the balance is correct and clearing as it should. So, once I see this, then a create a reconciliation as of 1/31/24 for ending balance $1,000 as I now know it is correct. It’s not always as clean as this (hence the need for a separate video), but this is just a quick example of what it could look like
I am learning so much from your videos! Thank you for making and posting them. My client has Clover integrated with Quickbooks and the Sales number it pushes through each day includes the Sales Tax collected, for some reason. How do you suggest I separate out the sales tax collected from the daily sales number?
Thank you for this feedback and I’m glad I’ve been able to help! This is exactly why I prefer the method shown in the video vs direct integrations. Honestly, what I would do is stop the integration, enter one bulk Journal Entry to “force” the numbers to actual and then use this method via the monthly Journal Entries moving forward. I’m guessing (but can’t say for sure at this time without knowing more) that adjusting Journal Entry will be a debit to sales and a credit to sales tax liability. The amount will be for that month’s sales tax collected. This will essentially lower the sales and increase the sales tax liability. If you did want to keep the integration as-is, you could also always just add in this Journal Entry every month to make this correction.
very informative, we are a medical business selling retails products, sometimes under a prescription, sometimes not prescribed, the same item can be taxable if not prescribed, and non taxable if bought with a prescription. moreover on the same bill, someone could have items with taxes and some without, for instance 600$ total but only 1.27$taxes. Do you have any advice so we can have clear reports at the end of the month on how much we owe to our dear government? appreciated
Given that the items are set up correctly in Clover and ran correctly at the POS stage, I would say that you should be able to gather the information you need using a combination of two reports in Clover: the "Item sales" report under Reports, which can also be sorted in various ways and exported to Excel if needed and also the "Taxes" report found under Finances. Thank you for watching!
When using JE, do we need to create product & service accounts or it's only used when using the sales receipt method?
Excellent instructions! Thank you! How would you account for unpaid balances in the Clover report?
Thank you, glad to help! For that, I usually just lower the sales portion by that amount to just utilize a cash-basis way of handling (not counting the income until it is paid for)
Great video! Thank you for breaking it all down
Of course! Appreciate the feedback
Question, how do you handle credit card transactions and the actual deposit of the credit card funds to bank account when completing the monthly sales JE?
The total amount of cc payment collected is entered via the journal entry into the clearing account in a given time frame and the daily deposits are handled in the bank feed by clearing out that clearing account
Hello! I have a question, hopefully you are able to answer. I added the sales as directed in the video, my issue is that, when I open the statement for the month for debit/credit card transactions there is an additional fee that is charged and comes out of the bank account separately. Now I’m noticing that the clearing account is overinflated because it is not accounting for that additional fee. What is the best way to correct that? Thank you!
I don’t think the Clover Clearing account should be overinflated if the fees are taken out via your bank account separately as long as you are not entering the fees during the sale entry. You would just account for the fees during the bank debit.
Can you please tell and explain what does ACCOUNTING SYNC option does in clover? Does it automate the process?
How whould you manage 3rd party payments and fees? Same as a credit card?
Yes, exactly. I would set up a separate clearing account assuming that it is a separate depositing channel into the bank account. The fee handling would be determined by how the fees are taken. If they are taken before payouts, then the fee expense will be entered in the sales entry journal entry stage and the debit amount into that clearing account will be calculated “net fees”. If they do monthly withdrawals out of the bank account to collect the merchant fees, then the amount in the clearing account at the sale entry journal entry will be “gross fees” and the fee expense not entered until the bank credit happens.
why is showing different with bank deposit ?
So how do you handle this when clover creates invoices in QBO, then posts the sales to undeposited funds. Then you have to receive the payment against the invoice. But then in the bank feed has the deposits, basically doubling income.
It sounds like you may have a Clover - QBO integration set up, which is a different workflow so I can’t speak for that. However, based on the description you made, it sounds like you would in the Bank Feed for those Clover deposits create transfers from Undeposited Funds to the Bank Account, that way you would not be doubling sales and would be clearing out the Undeposited Funds account. You would then audit the Undeposited Funds register to make sure the ins and outs match. Or, depending on how the invoices are structured, you could then match the deposits as “payments” to the open invoices which could just do the same effect of lowering the undeposited funds account and not doubling income. You would need to run Transaction Journals on the received payments to see what the actual debits and credits are being made to verify whether this is what is happening or not. This is generally why I usually stay clear of direct integration unless you can figure out during each stage if the debits and credits happening in the background are exactly what they should be based on how the integration is set up. Hope this helps, but again, this sounds like a direct integration attempt which is different than the outline of this video which forgoes any direct integration need so it’s hard for me to say exactly how to handle this without taking a deeper dive into the details.
How come QBO doesn't allow me to transfer from the clearing account?
It should, is your clearing account set up as a "Current Asset" in your Chart of Accounts in QBO?
How to entry POS sales in QBO (Restaurant business)