QuickBooks integration (Basic): Include Stripe fees to keep balances accurate

When clients pay you online, a Stripe processing 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 Stripe fees.

Note: This section is for Stripe secure card processing services only. Stripe takes a fee for each individual transaction while CPACharge collects one monthly fee for all transactions. You don’t need to turn on this feature if using CPACharge.

Step 1. Add 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. 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 transfer those funds in QuickBooks from your Stripe bank account to your actual bank account.

Go to  Transactions, then to Chart of accounts, click New, then create a dedicated checking account, named, for example, Stripe bank account and click Save and close. This shows where the money to pay the expenses is coming from.

Step 2. Add expense account in QuickBooks

Stripe charges you a fee for processing credit cards. To simplify accounting for these fees, add a new expense category according to the QuickBooks 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 Stripe fees on TaxDome

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

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

2. In the Stripe fee section, turn on the Create expenses for Stripe fees 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 Stripe fees show up in QuickBooks

Once done, you will find your Stripe processing fees for online payments in QuickBooks. Go to the Expenses and click on an expense transaction to view the details. 

Note! Recurring invoices automatically paid via Bank Debit do not display Stripe fees in QuickBooks. Currently, this feature only applies to card payments.

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.