By completing this process, we are reporting our Sales in the profit and loss accurately as well as properly recording our merchant fees, which is a distinct deduction that can be taken on your Schedule C when filing income taxes.
In ZarMoney we can account for merchants fees in one of two ways:
1. Add a negative amount to the Deposit Slip
Find the customer we received payment from using the search bar. From the drop-down in the upper left-hand corner of the customers transaction page, choose ‘Receive Payment.’
Select the invoice that the customer paid and direct the payment to the ‘Deposit Bag.’ Choose ‘Credit card’ as payment method, click 'Save & Close'
Now from the ‘Banking Navigation’ select the plus sign next to ‘Deposits’
Select the account that you made the deposit to and also check the box next to ‘Credit Card’ under the ‘Payment Methods’ section. Select your payment from the pop-up options.
Under the ‘Add New Deposits’ section, input the Vendor, a Merchant Fees account, and then the merchant fee amount with a minus sign in front. The deposit total then displays as the net amount that you received. Finish off by clicking the 'Save & Close' button.
2. Use the Merchant Fee/ Cash Back option
For the second method, complete the same steps as the first up until the ‘Add New Deposits’ section.
Instead of adding a new deposit as a negative we will instead click the box next to ‘Merchant Fee/Cash Back’ in the upper right-hand corner. Select Bank Fees as the account and enter the amount as a positive number. Select save & close and you are done!