11 Dec 2017
QuickBooks small business accounting software not only helps in handling the accounting operations but also takes care of the productivity of the business owner. The software is embedded with highly productive features of invoicing, track income & sales, recording payments etc.
If you invoice a client for $X and they pay you via PayPal, a part of that is taken away as PayPal fees. If you record the amount received of $X in QuickBooks, then it will show your bank account balance incorrectly. Thus to portray correct balance you would need to create Merchant Fees. Record the customer’s payment, and then pay X dollars into the expense account, thereby taking it from your bank account. This will allow you to see exactly where your money is going.
QuickBooks merchant account fee for credit card acceptance allows a company to charge customer credit cards. The same then gets deposited by the service provider in the merchant’s bank account at regular intervals.
The process of charging a credit card has several components, and the service provider either charges a fee for the services it provides or passes on service charges it incurs. In addition to regular fees for each purchase charged to a card, there are monthly fees and fees for transactions that the customer challenges. For high-volume accounts, fees generally average out at a percent of overall volume, but small businesses that have lower sales volumes can lose money due to merchant fees.
(For example: Assume that the actual amount received is $80 and invoice amount is $85 is the bank fee or merchant account fee that I need to record. In this example the amount shown is $85, so we need to get it down to $80.)
Though recording merchant account fees in Quickbooks is a bit tedious for beginners but the process ultimately is simple. Having a merchant account maintained within the program can bring a big difference and can further help you, in easily reconciling transactions with your bank.
Hope you were able to sort out your issue related to merchant accounts, but if there is any problem that you still might face then you can get in touch with us now. Our Quickbooks proadvisors will guide you on every step no matter how big or small it will be.
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