What are Square Batched and Square Balance

When processing your daily sales from Square, Shogo separates your Square credit card payments associated with those sales into three components:

1). Square Batched:

This amount represents the net bank deposit/batch payout that is processed by Square each day for which Square creates a batch payout amount.  This amount includes credit card payments for the current sales date that were batched by Square on the current date as well as payments for sales from prior dates that were batched on the current date. 

2). Square Balance:

This amount represents the net adjustment on a daily basis related to credit card sales on the current date that were not part of a Square Batch on the current date less credit card sales from a previous date that were batched on the current date.

3). Square Fees:

This amount represents the total processing fees that Square withholds from your Square credit card sales when processing the Square Batch.

As an example:

• Assumptions for Day 1:
  • Total Credit Card Sales today were $1,000
  • Square batches all sales prior to 8pmET on the current date
  • Credit Card Sales prior to 8pm were $800; Credit Card Sales after 8pm were $200
  • The Square Credit Card fee was $21

Based on the above, the Shogo posting for Day 1 would be:

Debit: Square Batched: $779 (the $800 batch - $21 in fees)
Debit: Square Fees: $21
Debit: Square Balance: $200
Credit: Sales, taxes etc: -$1,000

• Assumptions for Day 2:
  • Total Credit Card Sales today were $1,200
  • Square batches all sales prior to 8pmET on the current date
  • Credit Card Sales prior to 8pm were $700; Credit Card Sales after 8pm were $500
  • The Square Credit Card fee was $23

Based on the above, the Shogo posting for Day 2 would be:

Debit: Square Batched: $877 ($700 from today + $200 from the previous day - $23 in fees)
Debit: Square Fees: $23
Debit: Square Balance: $500 (to post the current day's un-batched balance)
Credit: Square Balance: -$200 (to reverse the prior day's balance which has now batched)
Credit: Sales, taxes etc: -$1,200

For clarity and ease of reconciliation, Shogo posts the additions to your Square Balance as one amount and the reductions to your Square Balance as separate line items on the Shogo daily posting.  The below sample is what you should see when reviewing the account to which you have mapped the Square Balance line item.

Note that the timing of when Square batches your credit card sales depends on how your business date is defined in Square and THIS ARTICLE provides more details on how to modify your default settings as well as the impacts of changing the default settings.

Summary: 

Square Batched represents the amount that will eventually be deposited to your bank account.  Depending on your accounting system, this line item in your Shogo mapping is most commonly mapped to a Bank Account, an Undeposited Funds account or a clearing account used for bank reconciliation purposes.

Square Balance represents the running balance of credit card sales that you have processed in Square that have not yet been batched.  This line item in your Shogo mapping is most commonly mapped to a special purpose clearing account of type "Other Current Asset."

**The above is based on common approaches and is not intended to imply a specific recommendation or accounting advisory service; so, if you are not certain which approach is best for you, we encourage you to consult with your accounting professional.**