Stripe is a popular payment processor for many businesses, and like other processors, it deducts fees from transactions before depositing the net amount into your bank account. Reconciling these Stripe fees in QuickBooks is crucial for maintaining accurate financial records. This guide will walk you through the process of reconciling Stripe fees in QuickBooks so that your books match your actual Stripe deposits and sales.
Why Reconcile Stripe Fees in QuickBooks?
Reconciling Stripe fees is essential because it ensures that:
- Your sales and fees are recorded accurately.
- Your bank account balances reflect the correct amounts after Stripe deducts its fees.
- Your financial records are ready for tax filings or audits.
Step-by-Step Guide to Reconciling Stripe Fees
Step 1: Record the Full Sales Amount
Before Stripe deducts any fees, you need to record the gross sales (the total amount before any deductions) in QuickBooks.
- Create an Invoice:
- Go to
+ Newand select Invoice. - Enter the full sale amount and customer details.
- Mark the invoice as paid if you've already received the payment via Stripe.
- Go to
- Sales Receipt (if you don't issue invoices):
- If you're recording direct sales, create a Sales Receipt by selecting
+ New, then Sales Receipt. - Enter the total amount before fees.
- If you're recording direct sales, create a Sales Receipt by selecting
Step 2: Record Stripe Fees as an Expense
Stripe deducts processing fees before transferring money into your bank account. To account for these fees:
- Create an Expense Transaction:
- Navigate to
+ Newand select Expense. - In the "Payee" field, enter "Stripe."
- Under "Category," select Bank Fees or create a new account called "Stripe Fees."
- Enter the fee amount deducted by Stripe.
- In the "Payment account" field, select Stripe clearing account (we’ll cover this next).
- Navigate to
Step 3: Use a Clearing Account
Stripe doesn't deposit the full amount of your sales, which means you need a way to manage the difference between what you're owed and what Stripe actually deposits. A clearing account helps match the amounts and reconcile these differences.
- Create a Clearing Account:
- Go to
Settings> Chart of Accounts > New Account. - Choose Bank as the Account Type and name it "Stripe Clearing Account."
- Use this account to record the full sale amount (Step 1) and the net deposit Stripe transfers to your actual bank account (Step 4).
- Go to
Step 4: Record the Deposit from Stripe
Stripe will deposit the net amount (sales minus fees) into your bank account. You need to match this deposit in QuickBooks.
- Record the Bank Deposit:
- Go to
+ Newand select Bank Deposit. - In the "Account" drop-down, select your actual bank account where Stripe made the deposit.
- Enter the net deposit amount.
- From the "Received from" drop-down, select "Stripe" or the specific customer linked to the sale.
- In the "Account" column, choose your Stripe Clearing Account to clear the difference between sales and fees.
- Go to
Step 5: Reconcile the Clearing Account
Once you've recorded the sales, fees, and deposits, your Stripe Clearing Account should balance to zero. To verify this:
- Go to Chart of Accounts and find your Stripe Clearing Account.
- Ensure that the balance is zero, indicating that all sales, fees, and deposits have been properly recorded and matched.
If the balance is not zero, review the transactions to ensure that you’ve recorded the gross sales, fees, and net deposits correctly.
Step 6: Reconcile Your Bank Account
Finally, reconcile your bank account in QuickBooks to ensure that the net deposit matches your bank statement.
- Go to
Accounting> Reconcile. - Select your bank account and enter the ending balance from your bank statement.
- Match the Stripe deposit to the corresponding transaction in QuickBooks.
Conclusion
Following these steps, you'll successfully reconcile your Stripe fees in QuickBooks. This ensures that your books are accurate and ready for reporting. Properly accounting for Stripe fees also helps avoid discrepancies when reviewing your financials or preparing for tax season.
For businesses using Stripe regularly, it might be worth integrating Stripe with QuickBooks to automate the recording of sales and fees. Various apps, including QuickBooks’ own tools and third-party integrations, can streamline the process.
Acodei is a third-party integration that automatically syncs all of your Stripe sales to QuickBooks. Acodei will automatically account for your fees as expenses and will automatically create Deposits that you can match on your Bank Feed to the Stripe payout. You won’t need to manually do any of that.
If you are looking for a tool to automate the Stripe fee reconciliation process, then Acodei is the perfect solution. There is even a free plan that syncs up to 30 transactions per month, and still accounts for fees and syncs customer information if needed. Acodei can also grow with your company as your Stripe syncing needs become more complex. With features like Multiple Product Mapping, Invoice Sync, Stripe Tax and Stripe Connect Mapping, you can be sure that any Stripe data you need synced to QuickBooks, Acodei can handle.
Key Points Recap:
- Record the gross sales amount in QuickBooks.
- Track Stripe fees as expenses.
- Use a Stripe Clearing Account to manage the difference between gross sales and net deposits.
- Record the bank deposit for the net amount.
- Regularly reconcile your clearing account and bank account to ensure accuracy.
By keeping your financial records in sync with your Stripe deposits, you'll ensure clean, accurate accounting and avoid headaches down the line.
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