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Managing ProPay Transactions in Ascend Live
You must understand that Ascend only manages the actual money that goes in and goes out of your checking account. You also need to know that leaving your money in the ProPay account is not seen kindly by the IRS. If there is not a paper trail for the income as well as the expenses paid out it can become an auditing nightmare. Although we are not really authorized to give tax advice, we strongly encourage you to talk with your accountant about this.
We, at Ascend, highly recommend transferring the money from your ProPay account into your checking account on a weekly basis (monthly at the very least). This meets the needs of your tax reporting purposes and also allows you to track these funds in your books. Plus your funds will be ready when you are ready to place your order.
Since the fees for your ProPay account never flow through your business checking account they do not need to be recorded in Ascend Live. ProPay provides you with a Monthly Reconciliation Report. This report can be found by logging into your ProPay account through InTouch then click on “view reports” then “Reconciliation Report”. You can print a copy of each month. ProPay now allows you to go back 6 months in addition to the current month. If you have a Premium account you will have an Annual Fee Summary or Annual Tax Statement automatically e-mailed to you. If you have the previously offered “Simple Plan” and have not been printing off your monthly fee reports you can order your Annual Fee Summary from ProPay for $14.95. This report is all you need to print out and hand to your accountant to report your ProPay fees. When you use this yearend report or have printed out monthly reports you do not need to manage these fees in Ascend. You will simply enter your ProPay deposit amount as a deposit from sales transaction. It is as easy as that.
Now if you are more detailed… You have 2 additional options in reporting your ProPay deposits:
Your 1st option would be to add your ProPay account as a checking account in your Ascend Live portfolio. You can then manage this account just like your actual Checking account and reconcile against your ProPay statement each month. Since this account will be in your MK business portfolio, when you transfer funds from your ProPay account to your MK Business Checking account you can easily manage this in Ascend Live. For this method you will just want to enter any and all funds, fees, etc that go into and out of your ProPay account. You will also need to reconcile each month for accuracy. You can use the Reconciliation Report mentioned above to do this. This does add time to your money management but is a viable option if you prefer to track this account in Ascend.
Your 2nd option is as follows: For this option, you would be best served by entering the ProPay Deposit as a “Deposit from Sales” and then doing a 2nd transaction that allows you to post the ProPay fees directly to your reports. You would post the fees as instructed below:
-Select Deposit Other
-Leave the amount field in the upper left as $0.00
-Then list the fee amount in the income category field and choose (may need to create a new income category) “direct to reports” income category.
-Add a line to add an expense category for the fee amount by clicking the green plus sign at the end of the row (just make sure you enter this as a negative amount) and it will be posted to your report (you can use the ProPay fee expense category).
You can decide which envelope to select (income holding bin is a good option) or you may also want to create a ProPay envelope/category, as you will need to designate BOTH an envelope and category. No money will come in or out of this envelope when posting this transaction, but you will need to designate both an envelope and category in order to post to your reports.
This way you can utilize the default settings of the Deposit from Sales screen but still get the fees posted on your reports.
Obviously, the cleanest way to do is the best practice of funneling all income and expenses through your business checking account.