Within your Bookkeeping tool in HoneyBook, you'll find your Payments tab, which provides an overview of outstanding, pending, and completed payments, as well as your Profit & Loss tab, where you can review your total income against your cost of goods sold and total expenses and calculate your net profit or loss.
The two sections calculate things slightly differently — see below for more info!
In the Payments tab, you will see the actual amounts that will be transferred to your bank account. That being the case, any tax you associated with items will be included in the amount you see, while the transaction fees for credit card or ACH bank transfer payments will have already been deducted.
For a $150 credit card payment (3% transaction fee), for example, you'll see the amount of $145.50 as your deposit amount ($150 - 3%).
Profit & Loss Tab
If you've added tax to any items or services for which you've received payments, the Profit & Loss tab will automatically deduct the tax in your Total Income and Gross Profit sections. The transaction fees associated with these payments, however, will not be accounted for in this tab.
That being the case, if you created a payment of $500 that had a 10% ($50) tax associated with it, your client will be paying the full $550, but you will see $500 in your Profit & Loss tab.
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Still have questions? Feel free to send us a message by clicking the Question Mark icon on any HoneyBook page. Our team is always happy to help!