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Working inside Square: what LedgerBPO does
Square bookkeeping services from LedgerBPO give shops, cafes, salons and service businesses a named accountant who reconciles every Square batch to the bank, splits gross sales from processing fees, tips, refunds and sales tax, and posts the result to QuickBooks Online or Xero. You keep your Square account; we keep the ledger tied to it.
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Your subscription, your data
Square bookkeeping services from LedgerBPO give shops, cafes, salons and service businesses a named accountant who reconciles every Square batch to the bank, splits gross sales from processing fees, tips, refunds and sales tax, and posts the result to QuickBooks Online or Xero. You keep your Square account; we keep the ledger tied to it.
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Inside your file
Every Square transfer matched to gross sales, fees, tips and refunds
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Reconciled on a calendar
Sales tax collected in Square reconciled to the liability account monthly
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Reviewed before you see it
Square Loans repayments and disputes posted where they belong
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A named accountant, a backup and a team lead
Inside your own software, on a fixed close calendar, with a reply from a person within 1 business day. Call +1-657-777-0006 or start a quote.
Get a custom quote 06 / 06
Why businesses on Square outsource
Square is easy to take payments with and hard to account for. A single bank transfer bundles a day of card sales, tips, refunds, sales tax and processing fees, and often a Square Loans repayment taken off the top. Owners who post the deposit as revenue understate sales, lose the fee deduction and carry a sales tax liability that never matches the return.
A dedicated accountant reconciles Square at the batch level, not the deposit level. We pull the transfer, sales and fee reports from the Square Dashboard, post gross sales by location and category, book fees and tips separately, and match each transfer to the bank line. You keep Square, your staff keep ringing up sales, and the books show what was actually sold.
What we do inside Square
Transfer and batch reconciliation
We match each Square transfer to the Transfers report, then to the underlying transactions, so gross sales, fees and net deposit agree with the bank every day.
Fees, tips and refunds split
Processing fees, tips owed to staff and refunds are posted to their own accounts from the Square Fees and Sales Summary reports instead of being netted against revenue.
Sales tax collected
Tax collected through Square's tax settings is posted to a liability account and reconciled to the amount reported on your sales tax return each period.
Multi-location and Square Online
Sales from each location, Square Online orders and Square Invoices are posted by class or tracking category so location P&Ls stay separate.
Square Loans and disputes
Daily repayment holdbacks on a Square Loan are posted against the loan, and chargebacks and dispute reversals are traced to the original sale and its fee.
Sync app setup and clean-up
We configure or repair connector apps such as Amaka, Synder or Bookkeep so summary entries land in QuickBooks Online or Xero as one journal per day, not thousands of lines.
Integrations we reconcile
- QuickBooks OnlineDaily Square summary journals, undeposited funds clearing and transfer matching.
- XeroSquare sales journals reconciled to the Square clearing account and the bank feed.
- ShopifySquare in-store sales kept separate from Shopify online orders when both feed one ledger.
- StripeCard payments split between Square in person and Stripe online, each reconciled to its own payout.
- GustoTips collected through Square reconciled to the tip amounts paid out through payroll.
Migration to and from Square
Moving to Square
Moving card processing onto Square, or adding Square Online alongside a store, means deciding how sales will land in the ledger before the first transfer arrives. We set up the Square clearing account, map item categories to income accounts, switch on tax settings by location, and reconcile the first month in parallel with your old processor so nothing is double counted.
Moving from Square
Leaving Square for Stripe, Shopify Payments or a bank merchant account needs a clean cut-off. We reconcile the final Square transfers, clear any pending disputes and Square Loans balance, export the full transaction history from the Dashboard for your records, and close the Square clearing account at zero so the new processor starts from a matched ledger.
Common Square reconciliation problems we fix
Deposits booked as revenue
The bank transfer is net of fees, tips and refunds, so posting it as sales understates income and hides costs. We post gross sales and book each deduction on its own line.
Sales tax never agrees with the return
Tax collected in Square depends on item and location settings that nobody reviews. We reconcile the collected balance to the filed return each period and fix the settings when they drift.
Thousands of synced lines
Connector apps set to sync every transaction bury the ledger and slow reconciliation. We switch to daily summaries and rebuild the history as clean journals.
Square Loans repayments hidden in transfers
The holdback comes off each day's sales before the transfer, so the loan balance in the books never moves. We post the repayment from the loan statement each month.
Disputes and refunds left in suspense
Chargebacks reverse a sale, its tax and sometimes the fee, weeks later. We trace each dispute to the original transaction so revenue and liabilities are corrected in the right period.
Other payments & e-commerce platforms
Frequently asked questions
Do you work inside my existing Square account?
Yes. You add our named accountant as a team member in your Square Dashboard with reporting access, and the account, the bank link and payout settings stay yours. We read the Transfers, Sales Summary and Fees reports, post to your ledger and never take payments or change your bank details.
How much do Square bookkeeping services cost?
Pricing depends on volume and scope, so we send a custom quote within 1 business day. The drivers are the number of locations, monthly transaction count, whether you use Square Online or Square Invoices as well, and whether Square reconciliation is part of a full monthly bookkeeping engagement or a stand-alone payment processor reconciliation.
Can you fix months of Square deposits that were posted as income?
Yes. We rebuild the period from Square's transaction export, reverse the net deposits, post gross sales, fees, tips, refunds and tax by month, and reconcile the clearing account to zero. This is scoped as a bookkeeping cleanup before the monthly service takes over.
How do you handle tips collected through Square?
Tips are a liability to staff, not revenue. We post them from the Square tips figures to a tips payable account, then clear that balance against the payroll run or cash payout, so wages and sales are both stated correctly and nothing is taxed twice.
Do you reconcile Square sales tax to my return?
Yes. Each period we compare tax collected in Square by location with the liability account and the figure on the return. Differences usually trace to item tax settings or exempt sales. Our sales tax reconciliation service explains the checks we run and the exception log you receive.
Can you handle Square in the UK, Canada or Australia?
Yes. The same batch reconciliation applies, with VAT, GST or HST posted in place of US sales tax. For Australia the tax figures feed BAS workpapers prepared for your TPB-registered BAS agent or accountant; we do not prepare or lodge the BAS ourselves.
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