Great instructional video. Very helpful. But what about entering Sales Tax, Sales Tax Payable and Inventory for the sale transaction? Do you have a separate video for that?
Thank you for this feedback. There are some sales tax & inventory discussions in my other “How To Enter (Blank) Sales into QuickBooks Online”, my Shopify video for example covers both sales tax and inventory. Basically, you add in a Sales Tax Liability line to be credited in the journal entry. So, if $1,000 in charges (sales), and $100 in sales tax collected all via Stripe, then the basic JE would be debit: $1,100 Stripe Balance, Credit: $1,000 Sales, Credit: $100 sales tax liability. For inventory, it depends on your whole workflow, but for example, you could add in during the sales je template, or as a separate entry as it won’t matter because the debit/credit is the same, a debit to a COGS account for total COGS that month and a credit to your Inventory Asset account to lower that by the same amount. Hope this (and potentially my Shopify video) helps!
I don't have any clients using Stripe, but this was very interesting in watching. Your Recurring JE illustration was very helpful for future use. Thank you!!
Thanks for the feedback Glen! My plan is to release next a kind of mini-series going over entering sales into QBO for multiple POS systems such as Shopify and Square, all revolving around this same concept of setting up a Journal Entry template
Thanks.. very helpful. as an alternative to having to add all the fees or the transfers together for a single line item, could I create a line item for each of the fee categories, just to make it more explicit and the cutting and pasting easier?
i just took our books back from our accountant who wasnt giving us monthly reports and i cant figure out how she is recording our registers and our square deposits. im so lost ill probably have to watch this over and over. thank you so much for recording this, there is just no training out there for enterprise gold desktop and retail businesses.
I'm sorry to hear about your Accountant and the stress involved now. I hope this video helps. I'm sorry to hear how lost you currently are and yeah I don't know of any good Enterprise Gold Desktop training out there, not that it doesn't exist, I just don't know of any. The best way I think that I could offer help is I'll link below my full small business structured online Bookkeeping Course. The way this course is designed is structured bookkeeping training specifically for small businesses in a very fundamental way. The way I structured the training in the course is that it should not matter which bookkeeping software you are using now or in the future, the core training concepts remain the same. From what I hear, I do believe this could be a great resource for you to get some peace of mind back, but I'll leave the link below for you to check it out and decide! www.essentially-intentional.com/bookkeepingcourse
I'm glad you're finding them helpful! That is just what this particular business workflow called for. But, as I mentioned in the video, most people won't have a Transfers amount in Stripe on a monthly basis. If so, it is up to you to determine what that Transfers number in Stripe actually represents and how it should be accounted for in your bookkeeping in QBO. In this case, the "Transfers" are payments to people for a service that should be classified as COGS for this particular business's workflow. This video is more to give a general workflow outline of entering sales using this journal entry template from Stripe into QBO. However, I didn't get too much into these kinds of specifics because every business's monthly Stripe report looks different, and the numbers and categories within the Stripe report mean different things to different businesses. Hope this makes sense, thanks for the feedback!
Gunnar thanks so much for this. Just a clarification, so the payouts from your Bank are categorized as a credit to your Stripe Balance, aka a negative balance. Then when you make the Journal Entry, you increase the Stripe balance / debit so that it equals what ever is left over in your Stripe account? I'm confused where the transfer comes in. If your payouts are debits to your bank cash account wouldn't the transfer you're talking about double book all your payouts?
You’re welcome! That is correct. The terminology is what is confusing you. The entries in QuickBooks Online we will use for the payouts, just because it is the transaction type that is easiest to work with in the QBO Bank Feed, QuickBooks Online calls them “Transfers” all these transfers are are a debit to one account and a credit to the other. In this case, a debit to your Bank Account and a credit to your Stripe Balance. It’s all only one transition per payout in QBO. The “transaction type” in QBO doesn’t matter, the most important thing is that for these payouts (again the terminology is confusing, that’s why I like talking only in debits and credits, the “payouts” are the terminology Stripe uses for funds moving from your Streip account to your Bank account) when this happens a entry in QBO needs to be made debited the bank account and crediting Stripe balance. There are many ways to make this debit/credit entry to happen in QBO, I just show in this video creating a “Transfer” because again it is the easiest transaction type to work with directly within the Bank Feed. Thanks for watching and I hope this helps!
I am a new bookkeeper and I have someone that uses acodei that automatically brings the transactions from stripe into QBO. Are you able to explain what the process would be if the sales transactions and fees are feeding directly to QBO?
I can’t say for sure as I have no experience with acodei, and the workflow I use and in the video is different for without any integration, and I would need to investigate further. However, most likely not matter how the data is being brought over, the journal entry shown in this video will be generally what you are looking for, except the Stripe Balance debit will be replaced by the debits to the bank account. So, I would find a transaction in QBO from the integration, open the “Transaction Journal” for that transaction found in the bottom and then start my investigation from there, looking at what debits and credits are happening.
Great video. I do have a question. I do transfer the funds from stripe to my business checking account. Do I have to create another template or just a rule? If so do you already have a tutorial video. I know how to set up a rule but I just want to make sure I'm doing this particular rule correctly since I'm manually uploading my strip info. Thank you again.
It’s up to you, a template and/or rule will work. You could also just create the transfers from the Stripe Balance to the Checking account directly from the checking Bank Feed without a template or rule, it’s up to you as they will all accomplish the same thing. I usually create rules for when the transfers happen automatically daily because of the high volume, with the manual transfers from Stripe, again it’s up to you. I know you said you know how to create a rule, but if you are interested I do have a tutorial TH-cam video on this topic here: th-cam.com/video/q7DK4wkAFOQ/w-d-xo.html , just apply these concepts to create a rule with the parameters of how the Stripe transfers look in your checking account Bank Feed in order to set those as “Transfers” from Stripe Balance to Bank Checking. Just be sure to always check off the “auto-apply” box at the bottom of the rule creation as I mentioned in the linked Bank Rules video so you can see and review how the rule is being applied on the Bank Feed. I would also be in your case completing Stripe Account Balance monthly reconciliations to review the accuracy of the whole workflow. Run a Stripe Balance Report and use the ending balance as of the end of the month prior to accomplish this. Thanks for watching!
@@essentiallyintentional Payouts are going to my client's checking account also. Can you tell me exactly what the rule or template would say please? There is something I'm missing here. Thanks for any help
@@daurelle7407 The following answer will assume you mean your client's business bank account and not their personal checking account, which would be handled differently. These payouts, whether set up as a rule or template would be a "Transfer" from Stripe Balance to the Business Bank Checking account, which in the background will credit (decrease) the Stripe Balance Asset and debit (increase) the Business Checking Account Asset balance. In terms of what the rule will say specifically I can't say. Each bank will show a different bank description for these Stripe payouts. What you will need to do is look at the bank descriptions in the Bank Feed for a few of these stripe payouts and with that information, choose the bank description part that applies per each payout and use that for the rule creation. I have another TH-cam video on my channel regarding setting up Bank Rules in QBO that I believe will be very beneficial in assisting with this process
I use the sales receipt template instead of using Journal entry. Its nicer and JE are typically for doing year end stuff. Just a personal preference, the result is exactly the same as yours. Plus I like to save the report with the end of month sales receipt. I put stripe fees under bank charges, separate heading, Bank Charges Heading, then under there bank charges, then stripe fees. I'm fussy because I also do the taxes (canada), so I know the categories for taxes. Just a hint...Nice Video you made.
Correct, using a Sales Receipt if done correctly (using positives and negatives to make the Sales Receipt equal $0 every time) produces the same result. I like to teach via Journal Entry as it forces users to match the debits and credits. The potential issue with sales receipts is it’ll allow you to enter it without it being $0, which would then be incorrect for this workflow, but if you ensure the positives and negatives always equal out to $0 and you know what debits and credits are happening in the background then Sales Receipts can work great!
@@essentiallyintentional I think also use bank deposit after creating Sales Receipt works for this too. Create the Sales Receipt with gross amount and deposit it to undeposited funds. When you make bank deposit select the Sales Receipt and add another items with negatives in there to record all the other fees and it will give actual deposited amount to the bank. I hope this is right, too..
This was amazing! Do you have a journal entry template for PayPal you can share? I'm getting confused by the payments sent, withdrawals and debites, and deposits and credits section on the PayPal statement. Each of the sections has subcategories and I am trying to map them correctly. Thank you!
Hi sir , We have set up a stripe clearing balance then the payout is what deposited on the bank. My journal entry would be credit Sales Sales tax payable Debit Stripe clearing account(deposited amount) Stripe fees Is it considered correct? How about if stripe payout which are deposited in the bank is link to the sales receipts of the customer ?what is the JE?
The “Transfers” are basically how to handle the accounting in QBO if you are transferring funds from your Stripe account into your Business Bank Checking Account. If you are not transferring funds from your Stripe account into a Business Bank account, then they can be left as-is, which will be under an account on your Balance Sheet under the Current Assets section (same section as a bank account would be). I’ve worked with small businesses who also don’t transfer funds out of their Stripe account, when this happens, I still handle entering the Stripe Sales using the same method shown in the video, just excluding the “transferring” part. This would just keep increasing the “Stripe Balance” Asset account on their Balance Sheet. Then, if you are using Stripe funds directly for business expense transactions, then you would just credit this same Strioe Balance account and treat it the same way as a bank account. Hope this helps!
That's very helpful. What to do when we have Pay outs like from Bank to Stripe Account? My client transfers from Bank Account to Stripe and then pays the contractor. In this case I see Pay out of $1000 in the balance report and also as money spent in my bank account while categorizing it.
First, everything on the sales entry side is the same as the “Balance change from activity” report is used for the sales entry, which does not include the Payout which are included in the “Balance Summary” & “Payouts” reports. You could bypass the Stripe payout step and just record the Stripe payout as the expense, but I would advise to not do that and to handle it in two steps. The reason being that it still allows you to reconcile the Stripe Balance based on end of month Stripe Balance Summary report ending balance without any timing issues. So, you would first categorize the payout itself as a Transfer in QBO from bank account to the Stripe Balance account. Then, you would enter the expense using the Stripe Balance as the Payment account. Note that if Stripe Balance is set up as a Bank Account in your Chart of Accounts then this is possible by creating an expense in QBO. If it is not set up as a Bank Account, but as a Current Asset, then you will need to handle this via a Journal Entry in QBO, debiting the expense and crediting the Stripe Asset account. Hope this helps!
@@essentiallyintentional My entry is like this - Charges are credited and Refunds, Transfers, Stripe fees, Stripe Account are debited. Charges are sales, Refunds are refunds if any, Transfers are the contractor expenses, Stripe fees are fees and Stripe Account is a Bank Account set up by me.
@@essentiallyintentional Now I have Payouts which are transfers from Bank to Stripe Account to pay contractors. I do categorize the payout is QuickBooks as Record as transfer from Bank to Stripe Account
I have "Tax" listed under the Additional Stripe Fees section. Where would that go in the JE? Should I have a separate line for the taxes on Stripe fees or combine that amount in with the fees since it's under additional stripe fees? If it should have its own line what kind of account would that be?
I would first investigate and know exactly what that line and number represents before making these decisions. I'm guessing that you should be added in a separate tax-collected account/line as a Current Liability account and not include it with fees, again though I would advise that you verify this.
What are your thoughts about setting Stripe up as a bank account in QBO? Then, I could leave money in stripe like a checking account and use as needed. I can also just enter the fees and such as line items in the "bank account." Will that work or am I setting myself up for disaster?
No, that could work just fine! Both (Bank or Current Asset) are in the same spot in the Balance Sheet and setting it up as a Bank account in QBO unlocks some capability like entering stripe fees as an expense transaction with Stripe as the bank account vs using a journal entry.
One question if anyone can answer. How to classify top ups of Stripe account from checking bank account? And how to balance it on the side of transfers between checking bank account and Stripe account. The purpose is to make "Transfers" in the example of video which is COGS before getting paid by customers from "Charges" from the example in video
Any works and I've seen it work many ways. What it is called in Stripe is Stripe Balance. What you name the associated account in QuickBooks Online is up to you. I've seen Stripe Clearing or Stripe Balance as Asset accounts and have also seen the Stripe Balance set up as a bank account in QBO. It all works because all of the above are under the same category on your Balance Sheet (Current Assets)
@@JoshuaBelanger Thank you! I think the automations are great if the settings allow you to capture every possible scenario within your business and there is a full understanding of the exact debits and credits that are happening with the integration for every possible scenario and they match what should be happening and whatever debits and credits from the integration that are entered in the bank account match the amounts and dates exactly in order to complete monthly reconciliations. I’ve just seen so many times when one of these scenarios isn’t exactly right and then errors snowball and then sometimes takes a long time to even realize the errors. That is why I personally prefer the customization and control of one monthly journal entry, but I’m not saying it’s the best solution for everybody and every business, there are many businesses where the automation direct integration could work great.
@@essentiallyintentional Thank you for that insight. There's a software on QBO that creates a daily invoice for total sales, etc. I'm trying to understand when using a daily approach like vs. monthly journal entry. I sell services and digital products.
Great instructional video. Very helpful. But what about entering Sales Tax, Sales Tax Payable and Inventory for the sale transaction? Do you have a separate video for that?
Thank you for this feedback. There are some sales tax & inventory discussions in my other “How To Enter (Blank) Sales into QuickBooks Online”, my Shopify video for example covers both sales tax and inventory. Basically, you add in a Sales Tax Liability line to be credited in the journal entry. So, if $1,000 in charges (sales), and $100 in sales tax collected all via Stripe, then the basic JE would be debit: $1,100 Stripe Balance, Credit: $1,000 Sales, Credit: $100 sales tax liability. For inventory, it depends on your whole workflow, but for example, you could add in during the sales je template, or as a separate entry as it won’t matter because the debit/credit is the same, a debit to a COGS account for total COGS that month and a credit to your Inventory Asset account to lower that by the same amount. Hope this (and potentially my Shopify video) helps!
Thank you so much for going through each step and being very thorough
Of course! Thank you for watching and thank you for the feedback.
THIS IS A LIFE SAVER!! Thank you!!
It was so super helpful. I was thinking of doing it but did not know the details and voila! Life saver indeed!
Glad I was able to help!
This is the best video I’ve seen on this. Absolute gold!
Glad I can help, thank you for this feedback!
I don't have any clients using Stripe, but this was very interesting in watching. Your Recurring JE illustration was very helpful for future use. Thank you!!
Thanks for the feedback Glen! My plan is to release next a kind of mini-series going over entering sales into QBO for multiple POS systems such as Shopify and Square, all revolving around this same concept of setting up a Journal Entry template
Thank you so much this will save me so much time!
Glad to hear it!
Great, great great video! Very well explained
Glad to help!
Thanks.. very helpful. as an alternative to having to add all the fees or the transfers together for a single line item, could I create a line item for each of the fee categories, just to make it more explicit and the cutting and pasting easier?
Yes, definitely! I see no downside to this.
As always thanks for the amazing content.
i just took our books back from our accountant who wasnt giving us monthly reports and i cant figure out how she is recording our registers and our square deposits. im so lost ill probably have to watch this over and over. thank you so much for recording this, there is just no training out there for enterprise gold desktop and retail businesses.
I'm sorry to hear about your Accountant and the stress involved now. I hope this video helps. I'm sorry to hear how lost you currently are and yeah I don't know of any good Enterprise Gold Desktop training out there, not that it doesn't exist, I just don't know of any. The best way I think that I could offer help is I'll link below my full small business structured online Bookkeeping Course. The way this course is designed is structured bookkeeping training specifically for small businesses in a very fundamental way. The way I structured the training in the course is that it should not matter which bookkeeping software you are using now or in the future, the core training concepts remain the same. From what I hear, I do believe this could be a great resource for you to get some peace of mind back, but I'll leave the link below for you to check it out and decide!
www.essentially-intentional.com/bookkeepingcourse
Hi. I'm finding your videos extremely helpful. But I do have a question: Why are the transfers the Cost of goods sold?
I'm glad you're finding them helpful! That is just what this particular business workflow called for. But, as I mentioned in the video, most people won't have a Transfers amount in Stripe on a monthly basis. If so, it is up to you to determine what that Transfers number in Stripe actually represents and how it should be accounted for in your bookkeeping in QBO. In this case, the "Transfers" are payments to people for a service that should be classified as COGS for this particular business's workflow. This video is more to give a general workflow outline of entering sales using this journal entry template from Stripe into QBO. However, I didn't get too much into these kinds of specifics because every business's monthly Stripe report looks different, and the numbers and categories within the Stripe report mean different things to different businesses. Hope this makes sense, thanks for the feedback!
Gunnar thanks so much for this. Just a clarification, so the payouts from your Bank are categorized as a credit to your Stripe Balance, aka a negative balance. Then when you make the Journal Entry, you increase the Stripe balance / debit so that it equals what ever is left over in your Stripe account?
I'm confused where the transfer comes in. If your payouts are debits to your bank cash account wouldn't the transfer you're talking about double book all your payouts?
You’re welcome! That is correct. The terminology is what is confusing you. The entries in QuickBooks Online we will use for the payouts, just because it is the transaction type that is easiest to work with in the QBO Bank Feed, QuickBooks Online calls them “Transfers” all these transfers are are a debit to one account and a credit to the other. In this case, a debit to your Bank Account and a credit to your Stripe Balance. It’s all only one transition per payout in QBO. The “transaction type” in QBO doesn’t matter, the most important thing is that for these payouts (again the terminology is confusing, that’s why I like talking only in debits and credits, the “payouts” are the terminology Stripe uses for funds moving from your Streip account to your Bank account) when this happens a entry in QBO needs to be made debited the bank account and crediting Stripe balance. There are many ways to make this debit/credit entry to happen in QBO, I just show in this video creating a “Transfer” because again it is the easiest transaction type to work with directly within the Bank Feed. Thanks for watching and I hope this helps!
I am a new bookkeeper and I have someone that uses acodei that automatically brings the transactions from stripe into QBO. Are you able to explain what the process would be if the sales transactions and fees are feeding directly to QBO?
I can’t say for sure as I have no experience with acodei, and the workflow I use and in the video is different for without any integration, and I would need to investigate further. However, most likely not matter how the data is being brought over, the journal entry shown in this video will be generally what you are looking for, except the Stripe Balance debit will be replaced by the debits to the bank account. So, I would find a transaction in QBO from the integration, open the “Transaction Journal” for that transaction found in the bottom and then start my investigation from there, looking at what debits and credits are happening.
Great video. I do have a question. I do transfer the funds from stripe to my business checking account. Do I have to create another template or just a rule? If so do you already have a tutorial video. I know how to set up a rule but I just want to make sure I'm doing this particular rule correctly since I'm manually uploading my strip info. Thank you again.
It’s up to you, a template and/or rule will work. You could also just create the transfers from the Stripe Balance to the Checking account directly from the checking Bank Feed without a template or rule, it’s up to you as they will all accomplish the same thing. I usually create rules for when the transfers happen automatically daily because of the high volume, with the manual transfers from Stripe, again it’s up to you. I know you said you know how to create a rule, but if you are interested I do have a tutorial TH-cam video on this topic here: th-cam.com/video/q7DK4wkAFOQ/w-d-xo.html , just apply these concepts to create a rule with the parameters of how the Stripe transfers look in your checking account Bank Feed in order to set those as “Transfers” from Stripe Balance to Bank Checking. Just be sure to always check off the “auto-apply” box at the bottom of the rule creation as I mentioned in the linked Bank Rules video so you can see and review how the rule is being applied on the Bank Feed. I would also be in your case completing Stripe Account Balance monthly reconciliations to review the accuracy of the whole workflow. Run a Stripe Balance Report and use the ending balance as of the end of the month prior to accomplish this. Thanks for watching!
@@essentiallyintentional Payouts are going to my client's checking account also. Can you tell me exactly what the rule or template would say please? There is something I'm missing here. Thanks for any help
@@daurelle7407 The following answer will assume you mean your client's business bank account and not their personal checking account, which would be handled differently. These payouts, whether set up as a rule or template would be a "Transfer" from Stripe Balance to the Business Bank Checking account, which in the background will credit (decrease) the Stripe Balance Asset and debit (increase) the Business Checking Account Asset balance. In terms of what the rule will say specifically I can't say. Each bank will show a different bank description for these Stripe payouts. What you will need to do is look at the bank descriptions in the Bank Feed for a few of these stripe payouts and with that information, choose the bank description part that applies per each payout and use that for the rule creation. I have another TH-cam video on my channel regarding setting up Bank Rules in QBO that I believe will be very beneficial in assisting with this process
I use the sales receipt template instead of using Journal entry. Its nicer and JE are typically for doing year end stuff. Just a personal preference, the result is exactly the same as yours. Plus I like to save the report with the end of month sales receipt. I put stripe fees under bank charges, separate heading, Bank Charges Heading, then under there bank charges, then stripe fees. I'm fussy because I also do the taxes (canada), so I know the categories for taxes. Just a hint...Nice Video you made.
Correct, using a Sales Receipt if done correctly (using positives and negatives to make the Sales Receipt equal $0 every time) produces the same result. I like to teach via Journal Entry as it forces users to match the debits and credits. The potential issue with sales receipts is it’ll allow you to enter it without it being $0, which would then be incorrect for this workflow, but if you ensure the positives and negatives always equal out to $0 and you know what debits and credits are happening in the background then Sales Receipts can work great!
@essentiallyintentional I was always taught not to use JE except for journal entries. Anyway no fast rule yours is fine. Mine is perfect too.
@@essentiallyintentional I think also use bank deposit after creating Sales Receipt works for this too. Create the Sales Receipt with gross amount and deposit it to undeposited funds. When you make bank deposit select the Sales Receipt and add another items with negatives in there to record all the other fees and it will give actual deposited amount to the bank. I hope this is right, too..
Can this process be automated now when you connect stripe with quickbooks where we no longer need to manually reconcile each month?
This was amazing! Do you have a journal entry template for PayPal you can share? I'm getting confused by the payments sent, withdrawals and debites, and deposits and credits section on the PayPal statement. Each of the sections has subcategories and I am trying to map them correctly. Thank you!
Glad to help! I do not currently, but that sounds like a good possible idea for a future video/topic.
Hi sir , We have set up a stripe clearing balance then the payout is what deposited on the bank. My journal entry would be credit
Sales
Sales tax payable
Debit
Stripe clearing account(deposited amount)
Stripe fees
Is it considered correct?
How about if stripe payout which are deposited in the bank is link to the sales receipts of the customer ?what is the JE?
Tell us more about transfers, from where this figure is coming, in our case there is no transfer!
The “Transfers” are basically how to handle the accounting in QBO if you are transferring funds from your Stripe account into your Business Bank Checking Account. If you are not transferring funds from your Stripe account into a Business Bank account, then they can be left as-is, which will be under an account on your Balance Sheet under the Current Assets section (same section as a bank account would be). I’ve worked with small businesses who also don’t transfer funds out of their Stripe account, when this happens, I still handle entering the Stripe Sales using the same method shown in the video, just excluding the “transferring” part. This would just keep increasing the “Stripe Balance” Asset account on their Balance Sheet. Then, if you are using Stripe funds directly for business expense transactions, then you would just credit this same Strioe Balance account and treat it the same way as a bank account. Hope this helps!
That's very helpful.
What to do when we have Pay outs like from Bank to Stripe Account?
My client transfers from Bank Account to Stripe and then pays the contractor.
In this case I see Pay out of $1000 in the balance report and also as money spent in my bank account while categorizing it.
First, everything on the sales entry side is the same as the “Balance change from activity” report is used for the sales entry, which does not include the Payout which are included in the “Balance Summary” & “Payouts” reports. You could bypass the Stripe payout step and just record the Stripe payout as the expense, but I would advise to not do that and to handle it in two steps. The reason being that it still allows you to reconcile the Stripe Balance based on end of month Stripe Balance Summary report ending balance without any timing issues. So, you would first categorize the payout itself as a Transfer in QBO from bank account to the Stripe Balance account. Then, you would enter the expense using the Stripe Balance as the Payment account. Note that if Stripe Balance is set up as a Bank Account in your Chart of Accounts then this is possible by creating an expense in QBO. If it is not set up as a Bank Account, but as a Current Asset, then you will need to handle this via a Journal Entry in QBO, debiting the expense and crediting the Stripe Asset account. Hope this helps!
@@essentiallyintentional My entry is like this -
Charges are credited and Refunds, Transfers, Stripe fees, Stripe Account are debited.
Charges are sales, Refunds are refunds if any, Transfers are the contractor expenses, Stripe fees are fees and Stripe Account is a Bank Account set up by me.
@@essentiallyintentional
Now I have Payouts which are transfers from Bank to Stripe Account to pay contractors.
I do categorize the payout is QuickBooks as Record as transfer from Bank to Stripe Account
I have "Tax" listed under the Additional Stripe Fees section. Where would that go in the JE? Should I have a separate line for the taxes on Stripe fees or combine that amount in with the fees since it's under additional stripe fees? If it should have its own line what kind of account would that be?
I would first investigate and know exactly what that line and number represents before making these decisions. I'm guessing that you should be added in a separate tax-collected account/line as a Current Liability account and not include it with fees, again though I would advise that you verify this.
What are your thoughts about setting Stripe up as a bank account in QBO? Then, I could leave money in stripe like a checking account and use as needed. I can also just enter the fees and such as line items in the "bank account." Will that work or am I setting myself up for disaster?
No, that could work just fine! Both (Bank or Current Asset) are in the same spot in the Balance Sheet and setting it up as a Bank account in QBO unlocks some capability like entering stripe fees as an expense transaction with Stripe as the bank account vs using a journal entry.
Perfect, thanks!
One question if anyone can answer. How to classify top ups of Stripe account from checking bank account? And how to balance it on the side of transfers between checking bank account and Stripe account. The purpose is to make "Transfers" in the example of video which is COGS before getting paid by customers from "Charges" from the example in video
hi, is stripe balance also called stripe clearing?
Any works and I've seen it work many ways. What it is called in Stripe is Stripe Balance. What you name the associated account in QuickBooks Online is up to you. I've seen Stripe Clearing or Stripe Balance as Asset accounts and have also seen the Stripe Balance set up as a bank account in QBO. It all works because all of the above are under the same category on your Balance Sheet (Current Assets)
What's the best tool you've found for automating this?
I prefer to not automate this, so I can't speak to the Stripe / QBO integration options out there as I have no experience with them
@@essentiallyintentional Great insights and video! Could you elaborate on you're against automation this?
@@JoshuaBelanger Thank you! I think the automations are great if the settings allow you to capture every possible scenario within your business and there is a full understanding of the exact debits and credits that are happening with the integration for every possible scenario and they match what should be happening and whatever debits and credits from the integration that are entered in the bank account match the amounts and dates exactly in order to complete monthly reconciliations. I’ve just seen so many times when one of these scenarios isn’t exactly right and then errors snowball and then sometimes takes a long time to even realize the errors. That is why I personally prefer the customization and control of one monthly journal entry, but I’m not saying it’s the best solution for everybody and every business, there are many businesses where the automation direct integration could work great.
@@essentiallyintentional Thank you for that insight. There's a software on QBO that creates a daily invoice for total sales, etc. I'm trying to understand when using a daily approach like vs. monthly journal entry. I sell services and digital products.