QuickBooks integration (Basic): Include TaxDome Payments payment technology fees
Coming soon! TaxDome Payments is currently available exclusively to a dedicated beta group for this feature. Docs on using TaxDome Payments are being prepared.
When clients pay you online via TaxDome Payments, a payment technology fee is deducted from the payment. This results in the payment amount on your bank statement being less than that 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 include payment technology fees. In this article, we will explain how to avoid this issue.
Step 1. Add bank payment account in QuickBooks
TaxDome Payments processes and holds funds on your behalf until they are transferred to your bank account. To keep your records organized, creating a dedicated bank account in QuickBooks for funds processed through TaxDome is a good accounting practice. When a transfer is made to your actual bank account, you can record it in QuickBooks as a transfer from your TaxDome bank account to your business bank account.
Go to Transactions, then to Chart of accounts, click New, then create a dedicated checking account named, for example, TaxDome bank account, click Save and close. This shows where the money to pay the expenses is coming from.
Step 2. Add expense account in QuickBooks
TaxDome Payments applies a fee to process credit card transactions. To simplify accounting for these fees, create a new expense category in QuickBooks according to their requirements.
Go to Transactions, then to Chart of accounts, click New, then be sure to create a Credit card account named, for example, Bank charges and click Save and close.
Step 3. Set up expenses for TaxDome Payments on TaxDome
This can be done only by a firm owner or admin:
1. Navigate to Settings > Integrations page from the left menu bar, then select the QuickBooks tab.
2. In the Payment provider fee section, turn on the Create expenses for TaxDome Payments toggle.
3. Select the expense account you created in the previous step (e.g., Bank charges) in the Expense payment Account dropdown. Notice that the dropdown only displays Bank and Credit Card expense accounts.
4. Choose the Commissions & fees (Expense) from the Expense payment category dropdown.
5. Click Save to keep changes.
How payment technology fees show up in QuickBooks
Once done, you will find your payment technology fees for online payments in QuickBooks. Go to Expenses and click on an expense transaction to view the details.
You will see the Expense account and Expense category from TaxDome selected in step 3, as the Payment account and Category in the expense details on QuickBooks.
Note: This article is for payments processed via TaxDome Payments only. You don’t need to turn on this feature if using CPACharge. To see the information for Stripe, read the other article.