Maintaining the bookkeeping for a yoga studio may be a tedious task for a studio owner.
Similar to any other point of sale system your first concern lies in how accurately daily sales will be recorded. You will wish to create a daily sales journal entry in your accounting system. The first thing you wish to understand is your daily sales entry requires mirroring the way that funds flow into your bank.
If your deposits of credit card has been made on a daily basis then your sales summary should reflect in that. In most instances, it is essential recording every individual day’s sales as a separate journal entry.
For extracting the daily sales from your accounting software, you need to run the daily closeout report. This report is available online on the client portal by selecting: reports/sales/daily closeout. After selecting the date you wish to have an overview of the closed data.
The first thing you will see is a summary of your payments and those would be debits to your daily sales journal entry. Sales and gift card redemptions should hit a gift card liability account as the sale should be identified when the gift card is redeemed. Your summarized view of the sales category appears at the bottom of the report and you would credit all those items into different income heads.
Divide it into as much detail as you like or just keep it simple. The last part of the journal entry would be the sales tax which should credit the sales tax liability account. Here is a simple summary of your journal entry:
It is important to note that to put American express card separated from the other credit cards as that is how most of the merchant processors will deposit them, but ensure to keep a check with your merchant processor. Also, cash and checks hit undeposited funds because they have not been deposited in the bank but only collected at your business place.
If you’re having any credit card processing issues like following the flow of your credit card deposits from your wallet to your bank, in such instance, consider your deposits swiped and keyed transactions separately into your bank account.
By scrolling to the bottom of your daily closeout report you will get to know about the merchant account processing section. The settled swiped and settled keyed transactions in most instances should get attached with the previous day’s sales. However, it is essential to make separate line items in your journal entry for both swiped and keyed transactions.
The proper recording of your daily sales journal entry should result in your ability to reconcile the bank account (at least the deposits, checks and payments is up to you). While it may appear difficult to record each day's sales separately it is actually the only way to accurately reconcile the bank account.
You certainly can make one journal entry for the sales of the entire month but then you are depending on your merchant processor and bank to properly deposit all of your money.
When you need to file your sales taxes you only require paying sales taxes on those goods or service on which sales tax is charged on. You need to have information extracted from the sales by category report. This report is readily accessible from your online client portal by selecting : reports/sales/sales by category. The report divides the sales into products and services and displays the items which are taxable and how much tax has been collected.
Now make a comparison with your sales summary report for the same period before filing. It is the sales tax check which would be coded to the sales tax liability account to offset the amounts recorded from your daily sales summary journal entries.