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Why do my POS sales differ from my bank deposits or Form 1099-K?

Short answer

The reports may measure different amounts. POS records show store transactions, bank deposits reflect settlements, and Form 1099-K reports gross payment transactions before certain adjustments.

Example

Processor fees, refunds and settlement timing can explain why a bank deposit is lower than recorded card activity.

What to review

POS totals, cash sales, merchant statements, refunds, fees and Form 1099-K. Reconcile the reports rather than adding them together as separate income.

Official source: www.irs.gov/businesses/understanding-your-form-1099-k

Related service: Retail Beauty Supply Accounting

This answer is general information, not advice for your specific situation. Tax rules change, so please contact us to review your facts before acting.

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