Thank you! this was very helpful. A customer paid us via Wire Transfer and I really didn't know how to apply the Wire Fee our Bank charged us. The first part of your video describe the steps perfectly. I was able to apply the payments and the fees successfully!
Great video! Solved two problems for me, but came across another one. I've been using stripe for my payments for my business and opened a dedicated business checking account at my bank back in August. Here's the problem. Do you think I updated the account in my stripe profile? Of course not! That would be simple and responsible. Once I noticed that error, I fixed it immediately. All future payments have gone to my new business account. But how do I account for that one $200 payment that went to the other account in my business account? Once I take care of that one rogue payment, the balance matches my fees to the penny! Any thoughts are welcome and thank you in advance for any help! 🙂
It depends, is the old account a business account? If so, it should have its own register in the books and recorded accordingly. If the old account is a personal account and the money will not ever be transferred to the business account then you would offset the deposit against Owner's Equity, the exact account name will depend on your business entity and how your books were setup. If you still need help, you can schedule a Live Support session floridavirtualbookkeeper.com/live-support/
QBO records the payment and processing fees directly, it's one of their selling points. They also deduct their processing fee separately so you get the full deposit and then a bank debit for the fee. The only action you should need to take is to match the deposits in the bank feed.
@@MiamiLyfeRentalsLLC QuickBooks Online is not designed to pass on the fee. A common practice is to factor it into your pricing as a cost of business and offering a cash discount for those that don't pay with cards. Otherwise, you will need to manually add an item to the invoice for the fee.
quite helpful, but the issue arises when there is no invoice for your daily sales. daily sales of some 250 transactions to various customers, Not one customer, then results in a daily charge from Square for the total transactions so there is no invoice and you can’t generate the sales invoice for 150 different items to different customers throughout the day.
In that case, you need to record gross sales on a daily basis based on your reports from Square. Some of my colleagues have already addressed this process in a video. I recommend you search TH-cam for Veronica Wasek's video on the Daily Sales Method as she goes into step by step detail on how to do this.
Hello. What about when I already posted the payments and I have done the reconciliation. How do I add the processing fees, can I added as a lump sum? Thank you!
It is possible to add the fees as a lump sum but it is not a best practice so I would only do that as a one-time adjustment to catch up your books. This approach requires a journal entry to increase income by the amount of the fees. If don't have an accounting background, I recommend reaching out to your accounting professional for advice on journal entries.
Thank you for doing this. This was an excellent video on how to do this! I do have another question though. How do you document the fee when it comes to transferring money from paypal to a credit card? This is a not a payment with credit card it is money they have received from clients and they are now transferring it to a credit card. I am doing a cleanup so this is in the past. I do intend on talking with them on whether they can transfer to the bank to avoid this fee but in the meantime need to figure out how to document this fee. I was thinking of doing the clearing how idea even though they only have a about six transacations a month.
Hi Beth, you can use a clearing account but you don't have to. In the Paypal register in the books, add an expense on the same date of the credit card transfer for the amount of the fee, normally this would be considered Bank Charges instead of Processing Fees. This will allow you to reconcile the Paypal account to the correct balance each month. I hope this helps!
I got to reconciliation and it is showing that expense for paypal as coming out of the account just like the transfer and it won't reconcile. I'm so frustrated with this. ***update, I figured it out*** I watched the video again and it all clicked. Thank you so much.
Just to clarify, the process you demonstrated from 0:00 to 7:00 is without app integration correct? You did not integrate Stripe and download Stripe transactions- instead, you waited for the transactions to hit the bank account before matching it to the sales receipt/invoice? What extra step is required if we did this through app integration?
Hi Adam, thanks for watching! You are correct, this scenario is for cases where transactions are not being synced over by an app. There are several apps that can sync Stripe transactions, most record the fees for you but not all. The specific process will vary by app. I recommend that you look at how your app is recording the transactions, is it posting sales receipts to Undeposited Funds? If so you will need to match those to the deposits, if the amounts in Undeposited Funds do not match the deposits, you will then need to add the fees as a separate line to that deposit so it will match. I hope this helps.
@@FloridaVirtualBookkeeper Thanks so much for the prompt reply and great video. I'll be using Square which has built-in integration. Given your explanation, would this be correct? 1. download Square transactions (which appear as gross amounts) which can be found in the "Banking" area. 2. Approve these amounts. 3. Match them to bank deposits when they hit the bank account and enter resolving transaction. But now what I'm missing is the link between the initial sales invoice created days ago and the deposit which is matched to the Square transaction.
@@adamreuben4259 It's been a while since I have worked with the native Square integration so I don't want to rely on faulty memory and give incorrect advice. I recommend checking out Square's help pages for details on how that integration works or perhaps somebody else has a video specific for that.
Was trying to do this with paypal payment today and it seems that when paypal and quickbooks are linked it automatically creates and matches an expense labeled PayPal Fees!!
If you are receiving a Stripe payout in the bank feed with multiple transactions in that one payout, can you still use a Sales Receipt to record those batched transactions?
@@FloridaVirtualBookkeeper thank you. Would it be possible to use just one sales receipt for the total Stripe sales in the day, then it can be matched with the bank feed deposit?
@@hollyzech8500 you could but that can be tricky as sometimes the batch deposit may not exactly match the total sales for the day (eg. if a transaction is processed after the cutoff for the date, as ACH or flagged for security review) so if doing bulk Sales Receipt, the way to go is to use a clearing account. That technique is beyond the scope of this video. If you are a bookkeeper or accountant, there are others that have tutorials on TH-cam. If you are a business owner, you may not want to complicate your life with clearing accounts.
This was incredibly helpful. Thank you so very much!
Excellent! Just what I was looking for! :) 1:57 Low Volume Stripe Transactions 5:50 High Volume Stripe Transactions
Thx awesome. What I needed to see. 😊
Great explanation! Thorough and easy to follow. Keep up the great work - it's super helpful!
Thank you! this was very helpful. A customer paid us via Wire Transfer and I really didn't know how to apply the Wire Fee our Bank charged us. The first part of your video describe the steps perfectly. I was able to apply the payments and the fees successfully!
I am glad that you found it helpful.
Thank You so very much Jessica! Your advice saved me from pulling my hair out. Great job!
I am glad that you found this helpful.
excellent description and help! Exactly what I was looking for. Thank you!
How do you correct this on a weekly/monthly basis versus doing it daily?
Wonderful! This was very helpful!
Glad I could help!
You just saved me today! Thank you!
Love your detailed explanation. Thanks You!
Thank you for this explanation! It was extremely helpful.
Awesome job! Very helpful and informative. Thank you!
Thanks for the vid! Such a great help
Excellent video.! Thank you
Great video! Solved two problems for me, but came across another one. I've been using stripe for my payments for my business and opened a dedicated business checking account at my bank back in August. Here's the problem. Do you think I updated the account in my stripe profile? Of course not! That would be simple and responsible. Once I noticed that error, I fixed it immediately. All future payments have gone to my new business account. But how do I account for that one $200 payment that went to the other account in my business account? Once I take care of that one rogue payment, the balance matches my fees to the penny! Any thoughts are welcome and thank you in advance for any help! 🙂
It depends, is the old account a business account? If so, it should have its own register in the books and recorded accordingly. If the old account is a personal account and the money will not ever be transferred to the business account then you would offset the deposit against Owner's Equity, the exact account name will depend on your business entity and how your books were setup.
If you still need help, you can schedule a Live Support session floridavirtualbookkeeper.com/live-support/
Awesome tutorial! What would be the process if I accept payments directly from QBO and I am being charged a fee?
Thanks in advance!!!
QBO records the payment and processing fees directly, it's one of their selling points. They also deduct their processing fee separately so you get the full deposit and then a bank debit for the fee. The only action you should need to take is to match the deposits in the bank feed.
@@FloridaVirtualBookkeeper Any tip how can I pass this fees to the clients? Thanks fro previous response!!!
@@MiamiLyfeRentalsLLC QuickBooks Online is not designed to pass on the fee. A common practice is to factor it into your pricing as a cost of business and offering a cash discount for those that don't pay with cards. Otherwise, you will need to manually add an item to the invoice for the fee.
quite helpful, but the issue arises when there is no invoice for your daily sales. daily sales of some 250 transactions to various customers, Not one customer, then results in a daily charge from Square for the total transactions so there is no invoice and you can’t generate the sales invoice for 150 different items to different customers throughout the day.
In that case, you need to record gross sales on a daily basis based on your reports from Square. Some of my colleagues have already addressed this process in a video. I recommend you search TH-cam for Veronica Wasek's video on the Daily Sales Method as she goes into step by step detail on how to do this.
Hello. What about when I already posted the payments and I have done the reconciliation. How do I add the processing fees, can I added as a lump sum? Thank you!
It is possible to add the fees as a lump sum but it is not a best practice so I would only do that as a one-time adjustment to catch up your books. This approach requires a journal entry to increase income by the amount of the fees.
If don't have an accounting background, I recommend reaching out to your accounting professional for advice on journal entries.
@@BookkeepingSystemsandWorkflows Yes, definetly not a good practice. I just need to catch up on my books. Thank you for the response!
Thank you for doing this. This was an excellent video on how to do this! I do have another question though. How do you document the fee when it comes to transferring money from paypal to a credit card? This is a not a payment with credit card it is money they have received from clients and they are now transferring it to a credit card. I am doing a cleanup so this is in the past. I do intend on talking with them on whether they can transfer to the bank to avoid this fee but in the meantime need to figure out how to document this fee. I was thinking of doing the clearing how idea even though they only have a about six transacations a month.
Hi Beth, you can use a clearing account but you don't have to.
In the Paypal register in the books, add an expense on the same date of the credit card transfer for the amount of the fee, normally this would be considered Bank Charges instead of Processing Fees. This will allow you to reconcile the Paypal account to the correct balance each month. I hope this helps!
@@FloridaVirtualBookkeeper Thank you! It does help! Thank you again! I subscribed. :)
I got to reconciliation and it is showing that expense for paypal as coming out of the account just like the transfer and it won't reconcile. I'm so frustrated with this. ***update, I figured it out*** I watched the video again and it all clicked. Thank you so much.
Just to clarify, the process you demonstrated from 0:00 to 7:00 is without app integration correct? You did not integrate Stripe and download Stripe transactions- instead, you waited for the transactions to hit the bank account before matching it to the sales receipt/invoice? What extra step is required if we did this through app integration?
Hi Adam, thanks for watching! You are correct, this scenario is for cases where transactions are not being synced over by an app.
There are several apps that can sync Stripe transactions, most record the fees for you but not all. The specific process will vary by app.
I recommend that you look at how your app is recording the transactions, is it posting sales receipts to Undeposited Funds? If so you will need to match those to the deposits, if the amounts in Undeposited Funds do not match the deposits, you will then need to add the fees as a separate line to that deposit so it will match. I hope this helps.
@@FloridaVirtualBookkeeper Thanks so much for the prompt reply and great video. I'll be using Square which has built-in integration. Given your explanation, would this be correct? 1. download Square transactions (which appear as gross amounts) which can be found in the "Banking" area. 2. Approve these amounts. 3. Match them to bank deposits when they hit the bank account and enter resolving transaction. But now what I'm missing is the link between the initial sales invoice created days ago and the deposit which is matched to the Square transaction.
@@adamreuben4259 It's been a while since I have worked with the native Square integration so I don't want to rely on faulty memory and give incorrect advice. I recommend checking out Square's help pages for details on how that integration works or perhaps somebody else has a video specific for that.
Thank you
Was trying to do this with paypal payment today and it seems that when paypal and quickbooks are linked it automatically creates and matches an expense labeled PayPal Fees!!
Yes, if you are using the "Connect to Paypal App" which adds Paypal as a bank feed, it will import the processing fees.
Perfect thanks
If you are receiving a Stripe payout in the bank feed with multiple transactions in that one payout, can you still use a Sales Receipt to record those batched transactions?
Yes, you can use sales receipts instead of invoices.
@@FloridaVirtualBookkeeper thank you. Would it be possible to use just one sales receipt for the total Stripe sales in the day, then it can be matched with the bank feed deposit?
@@hollyzech8500 you could but that can be tricky as sometimes the batch deposit may not exactly match the total sales for the day (eg. if a transaction is processed after the cutoff for the date, as ACH or flagged for security review) so if doing bulk Sales Receipt, the way to go is to use a clearing account.
That technique is beyond the scope of this video. If you are a bookkeeper or accountant, there are others that have tutorials on TH-cam. If you are a business owner, you may not want to complicate your life with clearing accounts.