Reconcile TaxDome Payments in QuickBooks Online

When clients pay online, transaction fee is deducted and the remaining funds are temporarily held before transferring them to your bank. Even though the money is yours when the client pays, the deposit may arrive later (e.g., paid Dec 31, deposited Jan 1), so you must record the income in the correct period.

To keep your books accurate in QuickBooks Online, create a clearing account for funds TaxDome Payments is holding. This ensures your recorded payments match the actual bank deposits after transaction fees are deducted.

Note

This article applies to firms using QuickBooks Online. If your firm uses QuickBooks Desktop, Xero, Wave, FreshBooks, Sage, or a similar platform, see Reconcile TaxDome Payments with your accounting software instead.

Step 1: Add bank payment account in QuickBooks Online

Create a dedicated clearing account in QuickBooks Online to represent funds TaxDome Payments is holding:

1. In QuickBooks Online, click the gear icon at the top right corner, and select Chart of accounts.

2. Click New account.

3. Create a checking account named TaxDome Payments Clearing.

4. Click Save and close.

Tip

Use a dedicated account instead of Undeposited funds to simplify monthly reconciliation.

Step 2: Set up expenses for fees on TaxDome

This can be done only by a firm owner or admin :

1. Go to Settings > Integrations page from the left menu bar, then select the QuickBooks tab.

2. In the Invoice sync section, verify Service income account is mapped to your income account.

3. In the Payment sync section, under Processing fee, toggle on Create Expense for Processing Fees.

Note

This expense only covers your payment provider’s own processing fee—not the payment technology fee . To sync the technology fee to QuickBooks Online, record it as income instead.

4. In the Expense settings subsection (revealed once Create Expense for Processing Fees is toggled on):

   a. Set Expense Payment Account (Clearing) to the clearing account you created in step 1 (e.g., TaxDome Payments Clearing).

   b. Set Expense Account (Processing Fees) to your chosen expense account—either Commissions & fees or a dedicated TaxDome Payments Processing Expense account.

Tip

To create a dedicated expense account in QBO, go to Chart of accounts > New account, set the type to Expenses and the detail type to Other Miscellaneous Service Cost, and name it TaxDome Payments Processing Expense.

5. In the Deposit accounts subsection below, toggle on Define “Deposit to” account for payments.

6. Set Account for online payments to your clearing account (e.g., TaxDome Payments Clearing).

7. Click Save on both sections.

Step 3: Sync the technology fee as income

By default, the payment technology fee isn’t recorded as a separate line in QuickBooks Online—only the invoice amount syncs. To give the fee its own place in your books, record it as income on a dedicated QuickBooks account:

1. Go to Settings > Integrations from the left menu bar, then select the QuickBooks tab.

2. In the Payment sync section, under Deposit accounts, toggle on Define “Deposit to” account for payments.

3. Set Account for technology fee (income) to your chosen Income or Other Income account—either one you already use or a dedicated TaxDome Payments Technology Fee Income account. The account must be different from your Online Payments Deposit account, Manual Payments Deposit account, and Service income account. TaxDome doesn’t create QuickBooks accounts automatically, so choose an existing one.

Note

Account for technology fee (income) only appears once the payment technology fee is enabled for your firm, and this setting is off by default.

4. Click Save.

Once enabled, each payment with a technology fee posts a separate, non-taxable income transaction to the configured account, using the same deposit account as the payment—the invoice amount and the QuickBooks Payment itself stay unchanged. If a payment is refunded, the corresponding portion of the technology fee is reversed on the same income account, proportional to the refund amount.

Step 4: Record Stripe payouts as transfers

When Stripe deposits funds into your bank account:

1. In QuickBooks Online, create a transfer from TaxDome Payments Clearing to your actual bank account.

2. Enter the payout amount from your bank statement.

Tip

Set up a bank rule in QuickBooks Online to automatically categorize these transfers each time.

Handle offline payments

Offline payments—such as cash, check or external card terminal payments—use a separate deposit account from online payments, so they don’t mix with whatever you’ve set as Account for online payments:

1. Go to Settings > Integrations from the left menu bar, then select the QuickBooks tab.

2. In the Payment sync section, under Deposit accounts, set Account for manually created payments to Undeposited Funds or another account you use to track manually recorded deposits.

3. Click Save.

How Stripe fees show up in QuickBooks Online

Once done, you will find your Stripe transaction fees for online payments in QuickBooks Online.

1. Go to Expenses & Bills > Expense transactions.

2. Click on an expense transaction to view the details.

You will see the Expense Payment Account (Clearing) you configured in step 2 (e.g., TaxDome Payments Clearing) displayed as the Payment account, and the Expense Account (Processing Fees) category (e.g., TaxDome Payments Processing Expense) displayed as the Category in the QuickBooks Online expense details.

The TaxDome Payments Clearing account balance will be net of fees, matching what TaxDome Payments deposits to your operating account.

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