The Flow of Business Payments

Welcome Aboard! We would like to start our journey with the general knowledge of what Business Payments does and how it works.

It is an app that successfully brings the information from your PayPalStripeSquare into your QuickBooksXero environment, keeping your books in perfect order and up to date. The logic of the app copies the money-flow that you have between your payment system's account and actual bank account and replicates the same flow in QuickBooksXero using a *PayPalStripeSquare Bank account.

*PayPalStripeSquare Bank account is the account which represents your payment system in QuickBooksXero (equal to PayPalStripeSquare balance) where transactions are recorded. Its balance is subsequently used to transfer amounts from PayPalStripeSquare to the actual bank account in QuickBooksXero and to have the accounts reconciled.

Please note: This "clearing" account is needed for a correct reconciliation. As once the app synchronized all transactions to PayPal Bank Account in the Chart of Accounts, you are to create bulk transfers from it to your checking account. Thus your PayPal transactions will be matched and ready for reconciliation. The app synchronizes all transactions to Stripe Bank Account in the Chart of Accounts. And once the payouts are enabled in the app settings it will also create transfers from Stripe Bank Account to your checking account, they will be matched automatically. The app synchronizes all transactions to Square Bank Account in the Chart of Accounts. And once the payouts are enabled in the app settings it will also create transfers from Square Bank Account to your checking account, they will be matched automatically.

We pay great attention to the security of your syncs that is why the app features a rollback function, which allows you to completely UNDO ANY SYNC with no harm to your books , taking all of the information previously synced off QuickBooksXero, thus keeping your company safe. Learn more about this function at the end of this guide.


Overview:


Data Flow Diagram

The data will initially be imported from your Stripe account to the app interface. You will see them as transactions with "Not Synced" status. After transactions are synced (green "Synced" status), you will be able to find them in your Xero. The scheme below will describe exactly how data will be recorded in your Xero account:


How to sync transactions

Manual sync

Select transactions needed (our filter is available to filter out the ones you need to sync) and click Sync under the Batch Actions menu.

In order to mark all transactions per page use top selector (1), you can also change the amount of transactions are showed per page (2). After all the transactions on the page are marked the option to “Select all transactions on all pages” (3) will appear.

You will see the amount of the selected transactions in the “Txn selected” field.

Autosync

Enable auto-sync in your General settings on the top right, clicking gear icon.

If enabled, transactions coming in after you have enabled the auto-sync configuration will reflect your QuickBooksXero Company automatically without your confirmation.

Please note: transactions that have been manually imported into the app will not be auto-synced.



Import Historic Transactions

You will find all the imported transactions under Transactions tab in the app in several minutes. After the transactions are imported from your PayPalStripeSquare to the app (note your sync balance will remain untouched), you can sync them to QuickBooksXero (this will make amount of syncs go down).

Once transactions for the chosen period of time are imported you can select them and initiate a synchronization.



Rollback function

If you need to undo the syncing, you can easily and quickly Rollback any Sync. Rollback erases transaction from your QuickBooksXero, causing no damage to your QuickBooksXero data. Please note, roll back will not reinstate the amount of the available syncs on your account.

Please note, that rollback does not reinstate the amount of syncs available. We, therefore, recommend to start by testing a few transactions rather than all at once.

To rollback several transactions, please go to the Transactions (left hand side) and select transactions you would like to roll back. Then hit Batch actions and Rollback.



Archive/Unarchive Function

In order to prevent mess in transaction list, you can use Archive feature.

Archived transactions are presented in a separate list. Mark corresponding checkbox to see them.

In order to sync archived records, please add transactions again to the Transactions list. To do so mark the needed ones and click Unarchive button.



Activity Reports

Business Payments provides extended activity reports with analytics upon the app's activity for a certain period of time (successful syncs, the number of unsynced transactions, failed to sync, rolled back transactions etc).

Choose the preferred schedule for reports to be generated and sent to your email in your account settings. By default reports will be generated once a week.


You can always ask any questions in our support chat in the right lower corner of the screen and we will be glad to help!

How To Sync Transactions In Multiple Currencies

In order to set up the synchronization for different currencies, set up Sales, Fees and Expenses for each of them using our newly introduced custom feature.


Overview:

Business Payments differentiates between your home currency (based on your company settings) and foreign currencies.


Creating accounts in QuickBooks

Before you start syncing foreign currency transactions, make sure that multicurrency is enabled* in your QuickBooks.
Learn how to enable it here: https://community.intuit.com/articles/1145843-turn-on-multicurrency-and-add-or-delete-currencies

*Please note that according to QuickBooks rules it is not possible to undo enabling multicurrency in your QuickBooks company.

We highly recommend creating a separate *Bank type account in QuickBooks and choosing them accordingly as a Sales, Fees and Expense Bank accounts.

*The name of the type might vary from country to country. Look for the word 'bank' in the name of the Account Type.

Accountants recommend to treat online payment systems as bank accounts, that way both incoming deposits and outgoing expenses will be properly accounted for.

After you set up separate Bank type accounts for each currency you are good to proceed.


Sales in multicurrency

  • 1. Go to Settings
  • 2. Go to sales
  • 3. Press on Gear
  • 4. Choose any of the available currencies and set up a Bank account where Sales Receipts, Refund Receipts and Payments received in each currency will be stored
  • 5. Update settings

Fees in multicurrency

  • 1. Proceed to Fees
  • 2. Select Fee Bank account
  • 3. Select Accounts for chosen currencies by clicking on Gear next to the respective fields
  • 4. Update settings
QuickBooks regards Fees as Expenses. Category needs to be of Expense type in QuickBooks Chart of Accounts.

Expenses in multicurrency

  • 1. Proceed to Expenses
  • 2. Choose Bank account
  • 3. Choose a Category for chosen currencies by clicking on Gear next to the respective fields.
  • 4. Update settings

Payouts in multicurrency

  • 1. Proceed to Payouts
  • 2. Select Checking account for chosen currencies by clicking on Gear next to Transfer Funds to
  • 3. Choose a Bank account for chosen currencies
  • 4. Update settings

Congratulations! Your account is all set to sync multicurrency transactions!

Rollback function

If you need to undo the syncing, you can easily and quickly Rollback any Sync. Rollback erases transaction from your QuickBooks, causing no damage to your QuickBooks data.

Please note, roll back will not reinstate the amount of the available syncs on your account.

To rollback several transactions, please go to the Transactions (left hand side) and select transactions you would like to roll back. Then hit Batch actions and Rollback.

How to Customize Your PayPal Settings

Overview:

Having connected your company and your accounts, you can start customizing your settings. You can always find them by clicking the “Gear” button in the upper right corner of the app:

Your Default settings will work for all transaction types from PayPal.


General

  • 1. Synchronize Automatically – when “ON”, the system will automatically synchronize transactions that come into the app after the setting has been enabled. When “OFF”, you can manually choose transactions to be synced.
    Learn more about manual and autosync here.
  • 2. Skip synchronization for duplicated transactions – when “ON”, transactions that already exist in your QuickBooks Online company will not be synced again.
  • 3. Apply payments to unpaid Invoice/Bill transactions – when “ON”, once the system encounters a payment that matches an unpaid invoice, it will be automatically applied to it.
  • 4. Shipping item name – This setting is needed in case the default configuration is not working and if your invoicing system gives an item name to the shipping. Type in the item name used by your invoicing system here in order for it to appear in shipping line in your QuickBooks Online, rather than being accounted for as a normal item.
  • 5. Apply location – when “ON” you can select a location from the ones you have in your QuickBooks Online to sync your transactions with those selected in the drop-down menu.

Sales

  • 1. Bank account – a buffer account that QuickBooks sales receipts, refund receipts and payments will be deposited into. In case you do not have an account with “PayPal” in its name, it will be auto-created in your Chart of Accounts.
  • 2. Apply default customer – when “ON”, it assigns a default customer name to all of your transactions. Click on to select a name. Choose from existing ones or type in a custom name.
  • 3. Enable QuickBooks Doc Numbers – by enabling this configuration your transactions will follow the standard QuickBooks Doc Number sequence.
  • 4. Payment Method – choose a payment method (cash, check, credit card, PayPal) that will be set for QuickBooks sales receipts, refund receipts, payments and expenses.

Products/Services

This setting tab is targeted at new products and services which are created during the synchronization. Product/service type can only be non-inventory or service, because when Business Payments creates a new product, it does not have an access to its Quantity on hand. Existing inventory products will be properly updated.

The income account specified here will be used for creating new products and services only.

  • 1. Product/Service type – choose between Non-inventory or Service. This will be used for creating products and services which do not exist in your accounting company.
  • 2. Generic product – when “ON”, it assigns a default product name to all of your transactions. Choose from existing ones under Default Product or type in a custom product name and press enter.
  • 3. Product Income account – choose an account that will be used for creating new products and services which do not exist in your accounting company during the synchronization.
  • 4. Default Product – choose or type in a name to be used if there is no product name to be found in your transaction.

Taxes

  • 1. Apply taxes – when “ON”, the system will search for a matching tax code. In case the system cannot find it, a tax amount will be included in the total sum.
  • 2. Apply generic tax code – choose a tax code the app will use for all sales transactions in your payment system whether they are taxable or non-taxable.
  • 3. Default tax code – choose a tax code the app will use for all transactions marked as “taxable” in your payment system. The app will find a correct code in most cases, use this setting in case the app cannot find the correct tax code.

*This screen will be slightly different for US and Non-US companies. Here is the guide on how to efficiently use taxes settings for both entities .


Fees

  • 1. Bank account – this setting specifies the bank to which the PayPal fees are applied. We recommend to use the same account as in Sales – Bank.
  • 2. Vendor – the app will use this QuickBooks Vendor to store your PayPal fees. Select available, or type in a custom one.
  • 3. Category – this setting specifies the category to which the PayPal fees are applied.

Expenses

  • 1. Bank account – this setting specifies the Bank account that the expenses are attributed to. We recommend to use the same account as in Sales – Bank.
  • 2. Category – this setting specifies the category that the expenses are attributed to.
  • 3. Apply default vendor – when “ON”, it assigns a default vendor name to all of the vendors, instead of creating a new one for each transaction. Choose from existing ones or type in a custom vendor name and press enter.

Multicurrency

You can find how to customize Multiple Currencies here:

How to Reconcile your PayPal transactions in QuickBooks

This guide will give you a clear picture of what needs to happen in QuickBooks Online after you have synced your transactions using Business Payments.

  • 1. Accountants’ favourite way to reconcile PayPal payments in QuickBooks.
  • 2. Before you start the reconciliation, make sure you do not currently have PayPal connected in QuickBooks banking or via other apps, as this could lead to duplications.

Overview:


Sync

Sync PayPal transactions into PayPal Bank Account*. By syncing your transactions into the clearing account, you will have the starting point to then transfer the amounts into the checking account, thus reflecting the actual money-flow.

*We recommend to sync transactions into a PayPal Bank Account and not your actual checking account, because checking account will not include the fees you pay to PayPal, therefore your balance will be off by the amount of fees you paid.

Find out more about Business Payments settings and buffer accounts here.


Transfer

Open For Review list in QuickBooks banking and choose Transfer, selecting your buffer account from the drop down list. Confirm by clicking on transfer.


Reconcile

When you are all set in Banking, you can reconcile your checking account to match the transactions on your monthly bank statement with the transactions we synced into QuickBooks Online.

To reconcile an account in QuickBooks Online, click the Gear button. Then click on “Reconcile” under the “Tools”.

Use the “Account” drop-down as pictured on the screenshot to select an account. Have your bank statement handy to specify the “Ending balance” and “Ending date”.

Click on Start reconciling

  • 1. In the “Reconcile (Account name)” window that opens, the account transactions appear on the “Payments,” “Deposits,” and “All” tabs.

  • 2. To mark transactions as “cleared,” click the small circles at the right end of the transaction rows.

  • 3. The information that was synchronized from the account statement appears at the top of the window.

  • 4. To change the information from the account statement, click the “Edit info” button in the upper-right corner of this window to open an “Edit the information from your statement” panel at the right side of the window. Save all changes or cancel.

  • 5. To finish after successfully reconciling an account, click “Finish now” to save it.

  • 6. To save your work and finish reconciling later or to leave to investigate an account discrepancy, select the “Save for later” option to save your work.

  • 7. After you successfully reconcile an account in QuickBooks Online, a reconciliation report becomes available.

  • 8. To view the report in the “Success! You reconciled your account.” window that appears, click the “View report” button.

  • 9. Otherwise, click the “Done” button in this window to close it.

  • 10. To view your Reconciliation statement later, click on “Reconcile” under “Tools” heading in the drop-down menu to open the initial “Reconcile” window again and click on “Reconciliation history” in the upper-right corner of that window. The account’s previous reconciliation reports then appear in list below. To open the report for the desired period, click the “View report” link under the “Action” column. To print it, if needed, click the “Print” button in the upper-right corner of the report.


Ideally, we are looking for a $0 difference, which will balance your QuickBooks balance with your bank statement. We recommend to repeat this process regularly, which will be accessible thanks to Business Payments.

Congratulations! You are all set.

By syncing into a buffer account using the flow recommended in this guide, all of your online Sales and Expenses will be matched with your current bank account.

Bank balance and QuickBooks balance will be even and you will be able to easily keep track of your online Sales and Expenses.


How to Customize Your Stripe Settings

Overview:

Having connected your company and your accounts, you can start customizing your settings. You can always find them in the upper right corner of the app:

Your Default settings will work for all transaction types from Stripe.


General

  • 1. Synchronize Automatically – when “ON”, the system will automatically synchronize transactions that come into the app after the setting has been enabled. When “OFF”, you can manually choosetransactions to be synced.
    Learn more about manual and autosync here.
  • 2. Skip synchronization for duplicated transactions – when “ON”, transactions that already exist in your QuickBooks Online company will not be synced again.
  • 3. Apply payments to unpaid Invoice/Bill transactions – when “ON”, once the system encounters a payment that matches an unpaid invoice, it will be automatically applied to it.
  • 4. Apply location – when “ON” you can select a location from the ones you have in your QuickBooks Online to sync your transactions with the location selected in the drop-down menu.

Sales

  • 1. Bank account – a buffer account that QuickBooks sales receipts, refund receipts and payments will be deposited into. In case you do not have an account with “Stripe” in its name, it will be auto-created in your Chart of Accounts.
  • 2. Apply default customer – when “ON”, it assigns a default customer name to all of your transactions. Click on to select a name. Choose from existing ones or type in a custom name.
  • 3. Enable QuickBooks Doc Numbers – by enabling this configuration your transactions will follow the standard QuickBooks Doc Number sequence.
  • 4. Payment Method – choose a payment method (cash, check, credit card or Stripe) that will be set for QuickBooks sales receipts, refund receipts, payments and expenses.
  • 5. Customer Name search Priority – drag and drop to the top of the list the field where the name of the customer should be taken from. If the name will not be in the field specified on the top of the list, then the app will look at the second specified field and so on.

Products/Services

This setting tab is targeted at new products and services which are created during the synchronization. Product/service type can only be non-inventory or service, because when Business Payments creates a new product, it does not have an access to its Quantity on hand. Existing inventory products will be properly updated.

The income account specified here will be used for creating new products and services only.

  • 1. Product/Service type – choose between Non-inventory or Service. This will be used for creating products and services which do not exist in your accounting company.
  • 2. Apply default product – when “ON”, it assigns a default product name to all of your transactions. Choose from existing ones under Default Product or type in a custom product name and press enter.
  • 3. Get product name from description in the Stripe charge – when “ON”, the app will be searching for a product name in the description of a Stripe charge.
  • 4. Product Income account – choose an account that will be used for creating new products and services which do not exist in your accounting company during the synchronization.
  • 5. Default Product – choose or type in a name to be used if there is no product name to be found in your transaction.

Taxes

  • 1. Apply taxes – when “ON”, the system will search for a matching tax code. In case the system cannot find it, a tax amount will be included in the total sum.
  • 2. Apply generic tax code – choose a tax code the app will use for all sales transactions in your payment system whether they are taxable or non-taxable.
  • 3. Default tax code – choose a tax code the app will use for all transactions marked as “taxable” in your payment system. The app will find a correct code in most cases, use this setting in case the app cannot find the correct tax code.

*This screen will be slightly different for US and Non-US companies. Here is the guide on how to efficiently use taxes settings for both entities .


Fees

  • 1. Bank account – this setting specifies the bank to which the Stripe fees are applied. We recommend to use the same account as in Sales – Bank.
  • 2. Vendor – the app will use this QuickBooks Vendor to store your Stripe fees. Select available, or type in a custom one.
  • 3. Category – this setting specifies the category to which the Stripe fees are applied.

Payouts

This tab allows to track Payouts that Stripe deposits to your checking account. The app will record them in QuickBooks, allowing for a simple matching of your actual deposits from Stripe to payments that you have received in Stripe and synced using our app.

It is matched under For Review tab in the QuickBooks Banking tab.

  • 1. Process payouts – when “ON”, the app will track and create deposit receipts reflecting Stripe payouts to your checking account.
  • 2. Transfer Funds To – Choose the checking account that you deposit the funds from Stripe to.

Multicurrency

You can find how to customize Multiple Currencies here:

How to Reconcile your Stripe transactions in QuickBooks

This guide will give you a clear picture of what needs to happen in QuickBooks Online after you have synced your transactions using Business Payments.


  • 1. Accountants’ favourite way to reconcile Stripe payments in QuickBooks.
  • 2. For one-step QuickBooks reconciliation, enable payouts processing in Business Payments settings before you begin with Step 1 to get instant matches of your Stripe payments and withdrawals to your checking account. Learn more about Payouts here.

Overview:


Sync

Sync Stripe transactions into Stripe buffer account.

*We recommend to sync transactions into a buffer account and not your actual checking account, because checking account will not include the fees you pay to Stripe, therefore your balance will be off by the amount of fees you paid.

Find out more about recommended buffer accounts in this article.


Match

After the synchronization is done, you are able to run a reconciliation in QuickBooks. If you sync manually, you will be able to sync historic transactions up until the most recent ones. In case you have enabled auto-sync, our app will check Stripe for new transactions every hour. Actual withdrawals from Stripe that you most likely have automatically going into your checking account usually get there 3-7 days after the actual date of payment, so before you begin the reconciliation process, make sure your withdrawals are up to date and open the For Review list in QuickBooks banking section for your checking account.

Click on match opposite every withdrawal from Stripe to match the information we synced with the actual withdrawals from Stripe into your checking.

*Pro-tip: Your aim would be to reach equal amount on both – your Bank balance and QuickBooks balance.


Reconcile

When you are all set in Banking, you can reconcile your checking account to match the transactions on your monthly bank statement with the transactions we synced into QuickBooks Online.

To reconcile an account in QuickBooks Online, click the Gear button. Then click on “Reconcile” under the “Tools”.

Use the “Account” drop-down as pictured on the screenshot to select an account. Have your bank statement handy to specify the “Ending balance” and “Ending date”.

Click on Start reconciling

  • 1. In the “Reconcile (Account name)” window that opens, the account transactions appear on the “Payments,” “Deposits,” and “All” tabs.

  • 2. To mark transactions as “cleared,” click the small circles at the right end of the transaction rows.

  • 3. The information that was synchronized from the account statement appears at the top of the window.

  • 4. To change the information from the account statement, click the “Edit info” button in the upper-right corner of this window to open an “Edit the information from your statement” panel at the right side of the window. Save all changes or cancel.

  • 5. To finish after successfully reconciling an account, click “Finish now” to save it.

  • 6. To save your work and finish reconciling later or to leave to investigate an account discrepancy, select the “Save for later” option to save your work.

  • 7. After you successfully reconcile an account in QuickBooks Online, a reconciliation report becomes available.

  • 8. To view the report in the “Success! You reconciled your account.” window that appears, click the “View report” button.

  • 9. Otherwise, click the “Done” button in this window to close it.

  • 10. To view your Reconciliation statement later, click on “Reconcile” under “Tools” heading in the drop-down menu to open the initial “Reconcile” window again and click on “Reconciliation history” in the upper-right corner of that window. The account’s previous reconciliation reports then appear in list below. To open the report for the desired period, click the “View report” link under the “Action” column. To print it, if needed, click the “Print” button in the upper-right corner of the report.


Ideally, we are looking for a $0 difference, which will balance your QuickBooks balance with your bank statement. We recommend to repeat this process regularly, which will be accessible thanks to Business Payments.

Congratulations! You are all set.

By syncing into a buffer account using the flow recommended in this guide, all of your online Sales and Expenses will be matched with your current bank account.

Bank balance and QuickBooks balance will be even and you will be able to easily keep track of your online Sales and Expenses.

Payouts feature

In order to simplify the reconciliation process in QuickBooks, we have introduced the Payouts feature available to all Stripe users.

Enabling Payout synchronization in Business Payments allows you to automate syncing data for the payments you receive in Stripe and the withdrawals you make from it into your checking account.

Select your checking account in Payout settings of Business Payments to get reconciliation-ready matches of payments and deposits in your For Review list in QuickBooks Banking, thus reducing the reconciliation process to 1 final step: your personal QuickBooks security check on already imported and matched data.

Enabling Payouts:

  • 1. Open Business Payments Settings, Payouts tab. Select “Yes” for “Process payouts”.

  • 2. Select your Checking account into which you deposit actual funds from Stripe in Transfer Funds To.

* Disclaimer: we strongly suggest to only use your actual checking account for recording payouts. Use a buffer account for synchronizing Stripe sales and fees. Learn more about our suggested way to set up accounts here.

Learn about other Business Payments settings here.

Learn how to reconcile synced Stripe transactions in QuickBooks here.

Customize Your Stripe Settings For Xero Integration

Overview:

You have connected your Stripe account to your Xero, and this guide will give you some more details upon settings that can be customized in the app to tailor it to your needs. To access Settings, click Gear Icon on the top right corner of the app.


General

  • 1. Synchronize Automatically – when “ON”, the system will automatically synchronize transactions that come into the app after the setting has been enabled. When “OFF”, you can manually choose transactions to be synced.
    Learn more about manual and autosync here.

Sales

  • 1. Bank account – choose Bank account where you Stripe Sales will be recorded. This account will represent your Stripe, we highly recommend to use Stripe Bank Account, which is suggested by the app.
  • 2. Customer Name search Priority – you can prioritise your customer name search. Just organize them in the order you need. If there is no customer names in your transaction, the app will check first for the options you have at the top of the list to match the name form there.
  • 3. Apply default customer – apply default customer feature helps you to assign the customer to your transaction. You may choose the name of the default customer from drop-down menu (4) and all your transactions will be synced under the name of this default customer selected.

Products/Services

  • 1. Generic Product – enabling this feature will replace the name of the product from your transaction to selected in Generic Product name (2)
  • 3. Get product name from description in the Stripe charge – the app may get the name of the product from the description of the transaction on Stripe side. Make sure you have only one product name in the description field.
  • 4. Product Income account – you need to set the account the new products will be associated with when they are automatically created by the app. All existing products will be matched with no issues (in case names are the same on Stripe and Xero sides).

Fees

  • 1. Bank account – set the Bank account for your fees to be applied, please note that fees account and sales accounts should be the same. We recommend to use Stripe Bank Account for it.
  • 2. Fee line account – select the account your fees will be applied to.
  • 3. Supplier – the app will use this Xero Supplier to associate with your Stripe fees. Select available, or type in a custom one, like “Stripe”.

Do you have any questions? We would love to hear from you. Please, contact via online support chat.

How to connect your Stripe to Xero


Step 1: Xero Connection

Whether you are setting up your account for the first time (photos #1, #2, #3) or adding another form of payment (start from the photo #4, then you will be redirected to #3) you can connect your Stripe account.

Photo #1

Photo #2

Photo #3

Photo #4


Step 2: Authorization

After pressing on Connect button you will be redirected to the Stripe homepage to grant your permission. After that you will be redirected back to the app.


Step 3(optional): Selecting the accounting company

In case you have several accounting platforms connected to your account in Business Payments, the app will give you the option to select accounting company you would like your Stripe transactions to go to. Otherwise you will not have this step.


One Click Setup

After you selected the accounting company you would like to use for synchronization, the app will redirect you to the standard setup configuration option, which are used by 80% of our users. You can press on “I’m ok to start” and start syncing or select “Go step-by-step” to set up the app in the extended mode.


Step-by-step configuration


Step 4: Set up your Sales Settings

Now you can set up your Sales settings.

Please select Stripe Bank Account* created by the app as a Bank account.

This will customize where your transactions are going to be stored in Xero. You will be able to also set some Default Settings here for changing the search of customer names priority, however all of the settings can be customized later.

*Stripe Bank Account will be automatically created by the app in your Bank Account section, it will represent your Stripe in Xero accounting system. All the transactions that the app syncs can be found there. We do not recommend to use your actual checking account here, as fees will not be accounted for properly.


Step 5: Set up your Product Settings

Step 5 allows you to set up Product settings.

This will affect where the NEW products are created during the synchronization. All the existing products will be picked up correctly in case their names match on Stripe and Xero ends.

Additional Settings are optional, you can customize them later.


Step 6: Set up your Fee settings

Step 6 allows you to set up your Fee settings.

Please choose the Supplier you prefer (most likely Stripe). Select the account to categorize your Stripe fees under Category field (for example Bank Service Charges).

This will customize where the fees are reflected in Xero.


Step 7: Set up your General settings

Step 7 allows you to set Auto-sync feature, it will sync all further Stripe transactions automatically with no confirmation. In case you need to sync existing Stripe transactions use Import old transactions tab on the left hand side menu after the setup is finished.


Step 8: Finish your set up

Step 8 allows you to finalize the set up by choosing to auto-sync all incoming payments from now on (Start to sync) or importing and subsequently manually syncing old transactions (Import old transactions).

Congratulations! Your account is set and ready to import from Stripe and sync transactions to Xero.

Frequently asked questions


How can I be sure it will not mess up my books?

We have a Roll Back function in the app, it allows to take off your Xero anything that was synced there.


How processing fee appears in Xero?

The app will create Spend Money transactions for Stripe processing fees.


How the sales transactions will appear in Xero?

The app will create Receive Money or Invoice with Payment, based on what came from Stripe.


How often does it syncs my transactions?

The app checks the information on payment platform end each hour, so if there is a new transaction within an hour it should be transferred by the app.


How do I reconcile synced data in Xero?

Once you have data synced to Stripe Bank Account, please make transfers to your checking account, thus you will be able to reconcile Stripe deposits on your checking account.


Will the app do everything automatically?

Yes, once everything is set up and auto-sync option is enabled, the app will account for all of your ongoing Stripe transactions.


Can I change settings after in case I am not sure during the initial set up?

Yes, you can do so. Click gear icon in Business Payments app to open Settings and change them any time.


Only 10 last transaction are brought in. What can I do about it?

The app imports automatically last 10 transactions for testing purposes, feel free to sync them and check results. However you also can import as many transactions as you have in your Stripe, after that you can test the app on selected transactions. Use Import Old Transactions tab for that.


If I Roll Back transactions, will I be able to sync them once more to Xero?

Yes, of course. Any deleted from Xero transaction can be synced again, however the amount of syncs will not be reinstated by the Roll Back.


Will upgrading the plan extend amount of available credits by adding or overriding them?

Pay attention, the app will override the current amount of sync credits with the credits of your new plan. So make sure you have 0 plan syncs left before subscribing to a new plan (additional syncs will remain on your balance).


How can I buy additional syncs?

Additional syncs are available for subscribed users only. The minimum amount you can buy is 500 additional syncs. Note, that these syncs have no expiration date, so they will remain on your account until they are used.


What subscription plans do you offer?

We offer both monthly and yearly plans, based on the amount of credits (syncs) available per month on your account as well as Pay-as-you-go plan, that charges 0.5% from the transaction amount. Learn more clicking person icon on the top right corner -> Plans and Billing.


Will the app charge me automatically if I exceed the plan sync credits limit?

No, in case you run out of syncs, the app will just stop syncing specifying that the reason for the failure is that you do not have enough sync credits. You will be able to sync those transactions after you upgrade or purchase an additional amount of credits.


How can I add another user to the app?

Right now the application works in a single user mode. However if you do not have permission needed to connect payment platform, the app gives you the ability to send invitation link to the account owner to grant access for the app.


How do I categorize my Income transactions with your app? It only gives one account?

Xero will categorize transactions based on the Income Account associated with the product, specified in the transaction. So you will have your income categorized. This one account given in the settings, will be used for the creation of new products or in case the product missing income account.


I have privacy concerns. If I connect this app to my Stripe, can you use it to make payments?

We have read-only rights necessary for synchronization of the data from your Stripe. You can check the list of rights when connecting a payment system.


Can I set the app to sync total daily income, as opposed to individual transactions?

The app is designed to synchronize data in the most detailed way possible. However you can run reports to see your daily, weekly, monthly income/expenses.


Will amount of my syncs be restored if I Roll Back transactions?

No, it will be not. Once the synchronization has been processed, the sync is gone. Any sync will use credits, even if transaction is synced for the second time.


Can I mark my invoices in Xero as paid when syncing payments from Stripe?

In progress.

How to Reconcile your Square transactions in QuickBooks Online

This guide will give you a clear picture of what needs to happen in QuickBooks Online after you have synced your transactions using Business Payments.


  • 1. Accountants’ favourite way to reconcile Square payments in QuickBooks.
  • 2. For one-step QuickBooks reconciliation, enable payouts processing in Business Payments settings before you begin with Step 1 to get instant matches of your Square payments and withdrawals to your checking account. Learn more about Payouts here.

Overview:


Sync

Sync Square transactions into Square Bank Account.

*We recommend to sync transactions into a buffer account and not your actual checking account, because checking account will not include the fees you pay to Square, therefore your balance will be off by the amount of fees you paid.

Find out more about recommended buffer accounts in this article.


Match

After the synchronization is done, you are able to run a reconciliation in QuickBooks. If you sync manually, you will be able to sync historic transactions up until the most recent ones. In case you have enabled auto-sync, our app will check Square for new transactions every hour. Actual withdrawals from Square that you most likely have automatically going into your checking account usually get there 3-7 days after the actual date of payment, so before you begin the reconciliation process, make sure your withdrawals are up to date and open the For Review list in QuickBooks banking section for your checking account.

Click on match opposite every withdrawal from Square to match the information we synced with the actual withdrawals from Square into your checking.

*Pro-tip: Your aim would be to reach equal amount on both – your Bank balance and QuickBooks balance.


Reconcile

When you are all set in Banking, you can reconcile your checking account to match the transactions on your monthly bank statement with the transactions we synced into QuickBooks Online.

To reconcile an account in QuickBooks Online, click the Gear button. Then click on “Reconcile” under the “Tools”.

Use the “Account” drop-down as pictured on the screenshot to select an account. Have your bank statement handy to specify the “Ending balance” and “Ending date”.

Click on Start reconciling

  • 1. In the “Reconcile (Account name)” window that opens, the account transactions appear on the “Payments,” “Deposits,” and “All” tabs.

  • 2. To mark transactions as “cleared,” click the small circles at the right end of the transaction rows.

  • 3. The information that was synchronized from the account statement appears at the top of the window.

  • 4. To change the information from the account statement, click the “Edit info” button in the upper-right corner of this window to open an “Edit the information from your statement” panel at the right side of the window. Save all changes or cancel.

  • 5. To finish after successfully reconciling an account, click “Finish now” to save it.

  • 6. To save your work and finish reconciling later or to leave to investigate an account discrepancy, select the “Save for later” option to save your work.

  • 7. After you successfully reconcile an account in QuickBooks Online, a reconciliation report becomes available.

  • 8. To view the report in the “Success! You reconciled your account.” window that appears, click the “View report” button.

  • 9. Otherwise, click the “Done” button in this window to close it.

  • 10. To view your Reconciliation statement later, click on “Reconcile” under “Tools” heading in the drop-down menu to open the initial “Reconcile” window again and click on “Reconciliation history” in the upper-right corner of that window. The account’s previous reconciliation reports then appear in list below. To open the report for the desired period, click the “View report” link under the “Action” column. To print it, if needed, click the “Print” button in the upper-right corner of the report.


Ideally, we are looking for a $0 difference, which will balance your QuickBooks balance with your bank statement. We recommend to repeat this process regularly, which will be accessible thanks to Business Payments.

Congratulations! You are all set.

By syncing into a buffer account using the flow recommended in this guide, all of your online Sales will be matched with your current bank account.

Bank balance and QuickBooks balance will be even and you will be able to easily keep track of your online Sales.

How to Customize Your Square Settings

Overview:

If you connected your company and your account it is high time to customize your settings. You can always find them in the upper right corner of the app:

Your Default settings will work for all transaction types from Square.


General

  • 1. Synchronize Automatically – when “ON”, the system will automatically synchronize transactions that come into the app after the setting has been enabled. When “OFF”, you can manually choose transactions to be synced.
    Learn more about manual and autosync here.
  • 2. Skip synchronization for duplicated transactions – when “ON”, transactions that already exist in your QuickBooks Online company will not be synced again.
  • 3. Apply payments to unpaid Invoice/Bill transactions – when “ON”, once the system encounters a payment that matches an unpaid invoice, it will be automatically applied to it. For this setting to work properly, make sure customer name matches on Square and QuickBooks ends.
  • 4. Apply location – when ON,you may select location associated with the payment, this location will be applied to any synced transaction. Please note, that tracking of location should be enabled on QBO side.
  • 5. Shipping Item Name - if the app encounters this name in one of your invoice line items, it will parse it as shipping item and it will account for it accordingly.

Sales

  • 1. Bank account – a buffer account that QuickBooks sales receipts, refund receipts and payments will be deposited into. In case you do not have an account with “Square” in its name, it will be auto-created in your Chart of Accounts with name “Square Bank Account”.
  • 2. Enable QuickBooks Doc Numbers – by enabling this configuration your transactions will follow the standard QuickBooks Doc Number sequence.
  • 3. Apply default customer – when “ON”, it assigns a default customer name to all of your transactions. Click on to select a name. Choose from existing ones or type in a custom name.
  • 4. Payment Method – choose a payment method (cash, check, credit card or Square) that will be set for QuickBooks sales receipts, refund receipts, payments and expenses.

Products/Services

This setting tab is targeted at NEW products and services which are created during the synchronization. Product/service type can only be non-inventory or service (no Quantity on hand information to create inventory items), however you can change created products to inventory later on QuickBooks side. Existing inventory products will be properly updated.

The income account specified here will be used for creating new products and services only. Learn more about the categorization of transactions in this guide.

  • 1. Product/Service type – choose between Non-inventory or Service. This will be used for creating products and services which do not exist in your accounting company yet.
  • 2. Generic product – when “ON”, it assigns a default product name to all of your transactions. Choose from existing ones under Default Product or type in a custom product name and press enter.
  • 3. Product Income account – choose an account that will be used for creating new products and services which do not exist in your accounting company during the synchronization.
  • 4. Default product – choose or type in a name to be used if there is no product name to be found in your transaction.

Taxes

This tab can be different based on the country version of your accounting company and taxation system there, so it is okay if you will not have some fields, the app automatically catch up with your company settings. You can learn more here .

  • 1. Apply taxes – when “ON”, the system will search for a matching tax code. In case the system cannot find it, a tax amount will be included in the total sum.
  • 2. Apply generic tax code – choose a tax code the app will use for all sales transactions in your payment system whether they are taxable or non-taxable.
  • 3. Default tax code – choose a tax code the app will use for all transactions marked as “taxable” in your payment system. The app will find a correct code in most cases, use this setting in case the app cannot find the correct tax code.

*This screen will be slightly different for US and Non-US companies. Here is the guide on how to efficiently use taxes settings for both entities .


Fees

  • 1. Bank account – this setting specifies the bank to which the Square fees are applied. We recommend to use the same account as in Sales – Bank, highly recommended to use "Square Bank Account".
  • 2. Vendor – the app will use this QuickBooks Vendor to store your Square fees. Select available, or type in a custom one.
  • 3. Category – this setting specifies the category to which the Square fees are applied, people like to use something like “Bank Charges and Fees” category.

Payouts

This tab allows to track Payouts that Square deposits to your checking account. The app will record them in QuickBooks, allowing for a simple matching of your actual deposits from Square. The app will not duplicate your income, it will just create matching record on accounting system end for easy reconciliation.

It is matched under For Review tab in the QuickBooks Banking tab.

  • 1. Process payouts – when “ON”, the app will track and create transfers reflecting Square payouts to your checking account (from yoru “Square Bank Account” to your checking account).
  • 2. Transfer Funds To – choose the checking account that your Square funds are actually deposited to. For example, “Checking” or “ Business Checking”.

Multicurrency

You can find how to customize Multiple Currencies here:

You haven’t found your questions in the tips, ask our support team via online support chat.

Payouts feature

In order to simplify the reconciliation process in QuickBooks, we have introduced the Payouts feature available to all Square users.

Enabling Payout synchronization in Business Payments allows you to automate syncing data for the payments you receive in Square and the withdrawals you make from it into your checking account.

Select your checking account in Payout settings of Business Payments to get reconciliation-ready matches of payments and deposits in your For Review list in QuickBooks Banking, thus reducing the reconciliation process to 1 final step: your personal QuickBooks security check on already imported and matched data.

Enabling Payouts:

  • 1. Open Business Payments Settings, Payouts tab. Select “Yes” for “Process payouts”.

  • 2. Select your Checking account into which you deposit actual funds from Square in Transfer Funds To.

  • 3. Update settings.

* Disclaimer: we strongly suggest to only use your actual checking account for recording payouts. Use a buffer account for synchronizing Square sales and fees. Learn more about our suggested way to set up accounts here.

Learn how to customize your settings in Business Payments while connecting Stripe and Square with QuickBooks Online.

Learn how to reconcile synced Stripe/Square transactions in QuickBooks.