Bookkeeping categories
What category is Square in bookkeeping?
A Square payout into your bank is usually Sales Revenue. Even Margin categorizes it that way and asks you to confirm it. Money going to Square can be a fee, a refund or a purchase, so Even Margin uses your bank's category for it, or asks you when the bank gives none.
What Square charges are
Square takes card payments at your counter or online and pays them out to your bank, after its fees.
How Even Margin categorizes Square
Sales Revenue. Payouts categorized, then sent to your review list.
- Even Margin recognizes Square on your bank transaction, using the merchant list its team curates.
- A Square payout into your bank is categorized as Sales Revenue at medium confidence and goes to your review list to confirm.
- Money going to Square takes your bank's category for it. When the bank gives none, it goes to your review list for you to choose.
When a different category fits
Whatever category you pick for a Square transaction stays: Even Margin never overwrites a choice you made.
- Square Payroll is payroll, under People & Payroll.
- Square Appointments is Online Software tagged Scheduling & Booking, and Square Online is tagged Website & Ecommerce.
- A refund you give a customer through Square is Sales Returns & Refunds.
I paid a shop and my statement says SQ *. Is that Square?
It is the shop, paid at its Square card reader, and Even Margin keeps it that way: the transaction shows the shop your bank names, its details say Paid through Square when your bank reports it, and your bank's category decides, so a coffee can land in Meals. It never counts as a Square payout. Toast and Clover card readers work the same way, as do the other statement codes, and you can filter Transactions by what a payment went through.
Why doesn't a Square deposit match my sales that day?
Square pays out your sales after its fees and any refunds, usually a business day or so later, so one deposit can cover more than one day of sales.
About this page
Reviewed 2026-10-08 by the Even Margin team.
These are categories for your books; for how a cost is treated on your tax return, ask your accountant. Merchant names are trademarks of their owners, and Even Margin is not affiliated with them.