thread Re: False Reporting in Orders, Menu Items, Catalog & Fulfilment

False Reporting

Dimitri2 — Sat, 20 Sep 2025 14:14:32 GMT

On square reports. It shows cash, credit, other. "Other" being 3rd party apps. However 3rd party apps keep 30% of the sale and pay you out a different amount. So square can show $100 but actually in my bank from "other" I get $70. This is a massive issue. As there is not point to running a report as it's false. It also throws out all your integrations. For example our labor % is false because the income is false.

Is there a solution or way to remove "other" from reports?

Re: False Reporting

TheRealChipA — Sat, 20 Jan 2024 20:58:51 GMT

Hi @Dimitri2. Actually, what Square is doing is in compliance with IRS and tax authority regulations. If we use third-party delivery apps, our gross sales are the same as if those orders were picked up in our stores. The services charges from Uber, etc, are expenses that must be accounted for elsewhere in our accounting system.

At the end of the year, Uber, etc, will report gross sales BEFORE they have taken out their fees. This is because they are our sales, not their, and we are responsible for taxes on them and so forth. When I used those services I always made sure that the total of all of them equaled what was in my Other column as reported by Square. That was my balance to be sure I didn’t miss something.

This is no different than the way Square handles card processing fees. Those fees are expenses, not changes to our sales. So Square reports all sales BEFORE those fees are deducted because that is what the law requires. It works the same if we are using third-parties to deliver our products. The sales income is still totally our responsibility.

Ultimately, yours is an accounting question. I would recommend sitting down with your accountant/CPA to be sure that your books are set up correctly. But Square is doing this exactly in compliance with existing laws and regulations.

Re: False Reporting

Dimitri2 — Sat, 20 Jan 2024 21:13:32 GMT

Yes you are correct as far as reporting goes. However square is a tool for my business and should have benefits. That is the reason we pay high fees to use square. Its a tool to help run our business. Of course I know the actual numbers on my end. Ultimately square is a tool for my employees and managers,

not for reporting to the irs.

For example 3rd party integrators like chowly or cuboh have the option to view your actual sales by removing the 20% commission for example. This just helps your managers realize we're the labor cost should actually be. Has nothing to do with your reporting of sales.

This I what I would like for square. To offer a similar tool to make it easy for my managers to know we're they are at.

On my end as an owner of course I see the real numbers.