Integration With QuickBooks

If you’re used to using QuickBooks Online, you can link your TaxDome to your QuickBooks Online accounts. Once they’re linked, you’ll see all payments and details made through TaxDome in your QuickBooks account.

Sign up for a free TaxDome trial. 

Covered here:

What Data Is Transferred?

Once the QuickBooks connection is set up, the following information from TaxDome will be available in your QuickBooks account:

  • Payment details, such as transaction date, amount, source, and payment ID.

  • Details of the invoice covered by the payment, such as amount and ID. Invoices paid from a user’s credit balance are also marked as paid in QuickBooks.

  • Details of the credit card transaction fee (if any).

  • Details of the customer who made the payment. 

  • Sales tax amount (currently - on for USA firms who had the Automated Sales Tax option on their QuickBooks account on. Read more here).

TaxDome and QuickBooks matching terms:

TaxDome  QuickBooks
Account Display name 
Bill Invoice
Payment (Cash, Credit Card) Payment (created in the Undeposited Funds account)
Payment (Promotional Credit) Credit Memo
Payment Processing Fee Expense (created in the account selected in firm settings)
Refund Refund Receipt

Note:

  • A TaxDome account name should be the same as QuickBooks Display name to be matched automatically. Or you can match them manually by going to the Info tab of account's profile.
  • A TaxDome Bill sum is the same as a QuickBooks Invoice sum.
  • A TaxDome Payment sum is the same as a QuickBooks Payment sum, excluding the Stripe/CPA charge fee.
  • The payment processing fee is calculated when a client makes a payment.

Connecting to QuickBooks Online

To sync TaxDome and QuickBooks:

1.  Go to Settings in the left sidebar, select Integrations in the menu bar, go to QuickBooks, then click the Connect to QuickBooks green button.

2. Enter your QuickBooks credentials, then click the green Sign In button.

3. Click Connect to give TaxDome access to use your QuickBooks Online data.

The connection is established, and you’re redirected to TaxDome.

TaxDome Transactions and Your QuickBooks Bank Account

All payments made through TaxDome go to the Undeposited Funds account in QuickBooks. The Undeposited Funds is another internal current asset account created by QuickBooks to hold funds until you’re ready to deposit them. These transactions are not counted in your QuickBooks balance until you move them over to the bank account in QuickBooks (learn more about this here).

Once a payment is added on TaxDome, you can see it on QuickBooks Online by navigating to Sales from the left sidebar, then going to the All Sales tab.

If the data from a bank transaction received by QuickBooks matches the data from a payment transaction added to TaxDome, QuickBooks pairs them. Navigate to Banking from the left sidebar, go to the For review tab, then click Match to process them. 

For credit card payments, you’ll also need to set up the account for a Stripe fee on TaxDome. Otherwise, QuickBooks will not be able to match your transactions.

The transaction will then appear under the Reviewed tab and will be counted in your QuickBooks balance.  

By reviewing the transaction’s details, you’ll be able to see that it was matched. Go to Sales from the left sidebar, open the All Sales tab, then click on the transaction. For TaxDome transactions that have been moved to the bank account in QuickBooks, you’ll see the corresponding information.

Note: If a payment moved to the bank account in QuickBooks will be later refunded through TaxDome, the refund will go to that same bank account. 

How Do I Include Stripe Fees on Quickbooks to Keep the Balance Accurate?

Note that this section is for Stripe secure credit card processing services only. Stripe takes a fee for each individual transaction while CPACharge collects one monthly fee for all transactions together. Thus, you don’t need to turn on this feature if using CPACharge.

When a client pays you online, a Stripe processing fee is deducted from the payment. This results with the payment amount on your bank statement being less than the payment amount in your QuickBooks Undeposited Funds account, where your TaxDome payments go. Because of this, QuickBooks may not find the proper transactions to match unless you do the following:

Step 1. Add a Bank Payment Account in QuickBooks

Since Stripe maintains a balance of funds on their platform for your services, they act like any other bank account for your business. Thus, it’s a good accounting practice to create a new bank account in QuickBooks for the funds Stripe holds. When Stripe transfers funds to your actual bank account, you'll simply "transfer" those funds in QuickBooks from your "Stripe bank account" to your actual bank account.

Go to Accounting, then to Chart of Accounts, click New, then create a dedicated checking account named, for example, Stripe Bank Account. This shows where the money to pay the expenses is coming from.

Step 2. Add an Expense Category in QuickBooks

Stripe charges you fees for processing credit cards via their platform. To simplify accounting for these fees, you can add a new expense category. 

Go to Accounting, then to Chart of Accounts, click New, then create an Expenses category named, for example, Merchant Fees - Stripe.

Step 3. Set up Expenses for Stripe Fees on TaxDome

Navigate to your TaxDome Settings from the left sidebar, select Integations in the menu bar, open the QuickBooks tab, turn on the Create expenses for Stripe fees toggle in the Stripe Fee section, select your Stripe bank account for the Expense Account field and Merchant Fees - Stripe for the Expense Category field, then click the SAVE button.

Going forward, Stripe processing fees for online payments will be sent as separate entries to the selected account on QuickBooks while keeping the balance the same as that of your bank statement. You can view the entries for processing fees by navigating to the Expenses tab of your QuickBooks account.

Changing Your Default Currency

When you first registered your firm with TaxDome, you chose a default currency. If your default currency in QuickBooks doesn’t match the one you selected on TaxDome, you’ll get an error message. Currently you don't have an option to change your default currency in TaxDome.

To change your currency setting in QuickBooks:

1. Click the gear icon at the top right of the window, then select  Account and Settings.

2. Navigate to the Advanced tab, then click the pencil icon to the right of the Currency setting. Select the currency that matches the one on your TaxDome account, then click Save.

Navigating to QuickBooks Payments from TaxDome

Once your TaxDome and QuickBooks accounts are synced, the data for payments and bills is automatically transferred to QuickBooks. 

To get information about any transaction sent to QuickBooks, navigate to Billings from the left sidebar, find the bill or payment you need to see, and then click the link in the Sync column. The bill or payment page in QuickBooks will open.

Manually Handling QuickBooks Sync Issues

We try to provide a smooth as possible synch between TaxDome and QuickBooks. However, occasionally, sync issues do occur. If you get an error, watch out for these possible reasons, so you can fix it: 

  • Your TaxDome client account data doesn’t match the QuickBooks data (see below).
  • QuickBooks sync with TaxDome was disabled on QuickBooks.
  • You have edited/deleted a QuickBooks entry that was earlier synced with TaxDome.

You’ll always get email notifications about QuickBooks sync errors. To review and handle them, go to your TaxDome Settings from the left sidebar, select Integrations in the menu bar, go to QuickBooks, then review the QuickBooks Errors section.

  • Accounts: These are errors caused by TaxDome and QuickBooks client data not matching.
  • Bills: These are errors caused by TaxDome Bills and QuickBooks Invoices data not matching. For example, if you have manually changed a TaxDome invoice number, you may have to duplicate the invoice number in QuickBooks. 
  • Payments: These are errors caused by TaxDome and QuickBooks Payments data not matching.
  • Refunds: These are errors caused by TaxDome and QuickBooks Refunds data not matching.
  • Expenses: These are errors caused by Stripe Payment Processing Fees and QuickBooks Expenses data not matching.          

You have two options for error issues with Bills, Payments, Refunds, and Expenses:

  • Resync: Try syncing the entries again. You may want do this after you’ve made changes to your QuickBooks data. If the sync is unsuccessful, the issue will still be visible in the list. 
  • Skip: Don’t try to sync a third time. If you do, you won’t be notified about the issue.

The bills and payments for your clients can be synced with QuickBooks only if your TaxDome and QuickBooks client account data matches. When you add a client, TaxDome searches for the same client in QuickBooks. If it does not find a QuickBooks client with matching data, an error message is displayed. You will also get an error if the QuickBooks client account that have been synced with TaxDome client account was deleted in QuickBooks. You will be able to select another account to sync then.

Type the client’s name in the ACTION column, select it when it appears, then click SUBMIT. If you can’t find a match in the list or if there are no mismatched clients in QuickBooks, select the Create new client option.

You can also skip an error issue by selecting that option. However, if you do skip it, the bills and payments for that client will not be synced with QuickBooks until the data on both sides matches. You can fix this anytime by going to the Info tab of the client’s profile. Click the three-dots icon next to the notification in the QuickBooks Connection Synс section, select the appropriate client or create a new one, then click SAVE.

Disconnecting from QuickBooks

To disable syncing with QuickBooks, go to Settings from the left sidebar, select Integrations in the menu bar, go to QuickBooks, then click the DISCONNECT button in the QuickBooks Connection section.

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