Your Bank Deposit Is Not Your Revenue

One of the most common bookkeeping mistakes I see is business owners recording the lump sum that lands in their account from Square, Stripe, Toast, or Clover as a single line of “sales.” The problem is that deposit has already been stripped of processing fees, refunds, chargebacks, tips, and sales tax—so booking it as revenue quietly understates your real sales, hides your true cost of doing business, and can throw off what you owe the state.

Posting these transactions correctly means recording gross sales, then breaking out the fees, taxes, and adjustments as their own line items so every number tells the truth. It’s a little more work up front, but it’s the difference between financials you can actually make decisions on and a set of books that looks fine until it doesn’t.

If you’re a high-volume business, this reconciliation should be happening every month—not discovered at year-end. How are you currently handling the gap between what your PSP/POS reports and what actually hits your bank?

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