Overview:
At the end of the year, Heard will request specific reports to make year-end adjustments to your books. This ensures that your Profit and Loss Statement more accurately reflects your true income and expenses for the tax year.
What is the Payment Processor Report?
Did you earn income in December 2023 that was deposited into your bank account in January 2024? If so, we’ll need a report from your payment processor or EHR that shows all of your earnings for 2023. This may be the same as the report that shows your processing fees.
Why is this report required for annual taxes?
In order to accurately reflect the fees you've paid in the year, we will need a report that shows the total processing fees your credit card payment processor charged during 2023. This helps avoid any accuracy-related penalties from the IRS.
We will adjust your therapy income and credit card merchant fees by the same amount. The net effect is $0, but your books more accurately reflect the therapy income and expenses you paid in 2023.
Where can I locate the report?
This report should become available in early January for the preceding year. Depending on your payment processor, it could be named differently.
Below are the reports for the processors that are most common amongst Heard therapists:
-
Stripe: Balance report and Payout reconciliation report
- Please note that both the Balance report and the Payout reconciliation report are needed
- Square: Sales Summary report
- Simple Practice: Tax Report for the preceding tax year
Maintaining privacy
Important: Please review these reports before you share them with us. Depending on how your transactions are recorded, they might include your client's names. To remain HIPAA compliant, please review the reports to redact or delete client information before sharing.
How to upload your report to Heard
You may upload this report to Heard by going to Your Practice>Documents>Bookkeeping and next to 2023 Payment Processor Report click Upload.