square tips sync quickbooks

cfuller · ‎03-27-2020

We use Quickbooks Online and Square POS & Payroll. The "Tips" we receive on sales show up as "Other Current Liabilities". How do I get these to clear from Liabilities and correctly reflect on my Balance sheet and Income statement.

I believe it currently give me an incorrect picture on both of these...understating income and showing a liability that doesn't exist.

I've tried calling tech support at Quickbooks and Square, but no resolution. The proverbial point me back to the other one.

JustinC · ‎03-29-2020

Hey there @cfuller

Unfortunately we don't have access to intuits system to see why the tips are reflecting as such. Even though we have a partnership with Quickbooks, they manage all functions and operations related to the Integration. I hate to give you the run around, but you'll need to reach out to Quickbooks to discuss this matter with them.

If they conclude that the issue stems from our end, grab a case number from them for reference and reach out to CS so our Teams can take a look: squ.re/contact

Justin
Community Moderator, Square
Sign in and click Mark as Best Answer if my reply answers your question.

Apt9F · ‎11-05-2020

Tips received ARE a liability until they are paid out via payroll (unless you pay them out in cash from the till, which is not a good idea).

So you just need to have the tips in and tips out to the same account. Unfortunately, in the payroll module you cannot choose a liability account for the mapping. So I map it to an expense account called "Square tips clearing" and then change the payroll journal entry after the payroll syncs to QBO.