Are you using Square/Stripe/Paypal (or any other Payment Gateway) to accept payments from your clients?
If yes, be sure to account for your Merchant Fees accurately!
👉🏾 Say your client pays $1,000 for your service, and you processed it through Square.
👉🏾 After the processing fee, let’s say the amount coming into your bank is $ 960.
👉🏾 You’ll still need to record your earned revenue as $1000 (not $960)!
👉🏾 The $40 merchant fees should be booked as an EXPENSE.
This is important, as your Revenue line item would be understated otherwise – and your financials will not be accurate.
Something that I often catch business owners overlooking.
If you have questions, feel free to reach out. 🌺