Posts by Keith Martinez5

Timothy Morgan38 said:You're spot on...

What you're seeing there is the deposited cash receipt... because above it, the receipts show cash intake (daily register totals) and bank deposits (payments via ACH or credit card)...

So...

1. Let's say you have $50 revenue collected through your business checking account.
2. And let's say you also have $100,000 in cash registered at the till...

From that, you've deposited $32

The total bank turnover—which the IRS views as taxable income—is $82

But looking at the receipts, you only see $150,000 via wire and $100,000 in cash...

That specific field exists to report the value of the cash deposit made into the bank account (which was already accounted for in the cash receipts). This prevents double taxation, since the bank reports total deposits to the IRS, and the IRS doesn't distinguish between a cash deposit, a loan, or actual revenue...

As for the rest of the $1.75... it either needs to be sitting in the register, spent on something, or treated as unearned revenue, and that's that...

Personally, I think it's a solid system. I won't have to write endless explanations about exactly what was wired where; I just fill out the form, copy the entries from my loan and credit statements, and call it a day...

In the past, I had to write pages upon pages of explanations every single year...

Charles Turner13 said:I completely agree.
Back when I was still in college, they taught us that cash meant nothing but physical bills and checks—that was the only thing that truly counted toward revenue.
Sure, card transactions go through the tax reporting system, but they aren't technically cash payments, so for the last 15 years, I've been recording them as bank transfers in my KPI.
The tax reform law shouldn't be able to override the existing payment services law.

Arthur Bishop6 said:I wouldn't sweat it too much if you missed those write-offs in your expenses. It’s just a technicality—at the end of the day, the expenses and income balance out anyway. That’s the part that actually matters.

But seriously, has anyone else been scrolling through the IRS website? I just got an email from
the SBA saying they pushed the deadline for the statistical report back to September 1st, 2016. WTF?

Is this for real?

she is;57298453 said:

Keith Martinez5 said:You can actually pull the transaction history directly from the first statement—just request an excerpt and set the date range from January 1st through December 31st.

Thanks! Interestingly enough, when I reached out to customer service, they told me I had to submit a formal request via email and that there would be a fee involved.$17😠

amberbadger17 said:I’ve been using Wells Fargo’s online banking, so I can just hop on there whenever I need to print out my statements for a specific timeframe.

amberbadger17 said:I basically treat my credit card reconciliation like some kind of DIY scrapbook project.

I just pull the statements from my online banking, print out everything for the period, and then manually log all the transactions—recording the actual deposits against the ledger while treating those pesky fees as "in-kind" income.

Look, sure, I’m technically making the numbers look a little... creative, but whatever. 😁

Henry Edwards33 said:🤣

That’s exactly where I struggle. My shop handles multiple card types, installment plans, all that jazz... it's basically Mission Impossible to keep it straight. Honestly, I’ve tried everything, and it just doesn't work for me.
On top of that, the processing fees always seem to vanish into thin air because some companies send two statements a month—one shows up now, and the next one might not arrive for another couple of months.

I finally decided to just close out the card accounts immediately so I don't end up owing the IRS anything. To be honest, I couldn't care less about the hassle.😁

Brenda Chase3 said:You actually record both the expense and the income in kind for the amount of the commission.
Think of it this way: let's say your invoice is for $33. A credit card processor pays $27 into your business checking account, but they take their commission of $6.75 first. At the exact same time, you receive an invoice from them for that $6.75 fee, which you don't actually pay out of pocket because you simply offset it against the lower amount they deposited.

You clear the IRA $27 via your bank account (since the transaction shows that specific net amount hitting your books), but you clear the $6.75 in kind because the invoice is for $33; you can't just ignore the total value of the bill.
At the same time, you close out their URU for $6.75 in kind. It’s essentially a classic offset, except instead of having a formal debit memo statement, you just book everything so that the IRA and the URU perfectly cancel each other out.

Brenda Chase3 said:As for the processing fees, I book those as non-cash adjustments—similar to how one might handle a discount, since it functions quite similarly. It’s not like actual money hit our bank account, nor did we pay the fee through a separate wire transfer; instead, we simply offset the total amount received by deducting the fee upfront. Following the guidance from our financial advisor, we treat these as non-cash items. This is the method we've used for years when submitting our summaries to the IRS, and it has always been perfectly acceptable. If we didn't do this, we'd constantly be stuck explaining discrepancies between our bank statements and our reported income to tax auditors. By handling it this way, our cash deposits and our bank totals align perfectly with the merchant statements provided to the IRS.

Susan Cruz48 said:Look, if we're treating card transactions like cash, it just doesn't make sense to log them as bank deposits. And even if you did go that route, the commission should be recorded right there in the bank deposits as a negative entry. Personally, I just put those amounts under cash receipts.

amberbadger17 said:1. Yep.
2. You can either enter the total receipt including sales tax (minus VAT) and then subtract it with the next line item. Or, just enter the total amount without sales tax and then adjust it through expenses so everything "evens out." Most people do it that way—honestly, I do too, because my software doesn't separate sales tax for me.
3. Just look at how much the card payments actually hit the bank account and list that as the receipt. Then, list the processing fee as a non-cash receipt.

amberbadger17 said:🙂 So... any updates on those corporate filings and sending over the paperwork for them? Are we actually going to have to deal with that headache, or can we just pretend it doesn't exist? Honestly, I’m getting zero intel here—and naturally, not a single subscription to a trade journal in sight this year either. 🙏

Jessica Gonzalez30 said:🤣🤣🤣
God forbid—why bother stressing over it if you already know you're probably going to tweak it at least one more time? Besides, anything could happen with federal regulations before February 28th. 🤣🤣

placidlynx92 said:That’s exactly it.
Essentially, the tax rates themselves haven't changed—it's just that the obligation to calculate them and the specific payment accounts have been overhauled.

placidlynx92 said:If you're running your own business and aren't employed elsewhere, there's no need to fill out section 4.2.8.—your business counts as your primary occupation, not a secondary one.