Configure Stripe and QuickBooks for accurate balances

When clients pay online, Stripe deducts its processing fee and temporarily holds the remaining funds 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, create a clearing account for funds Stripe is holding. This ensures your recorded payments match the actual bank deposits after Stripe fees are deducted.

Note

The article applies only to firms using Stripe or TaxDome Payments.

Step 1. Add bank payment account in QuickBooks

Create a dedicated clearing account in QuickBooks to represent funds Stripe is holding:

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

2. Click New account.

3. Create a checking account named Stripe bank account.

4. Click Save and close.

Tip

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

Step 2. 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 Sync settings section on the left, verify Service income account is mapped to your income account.

3. In the Payment provider fee section on the right, turn on the Create expenses for Stripe fees toggle.

4. In the Expense settings subsection:

   a. Set Expense account to the clearing account you created step 1 (e.g., Stripe bank account).

   b. Set Expense payment to Commissions & fees (Expense).

5. In the Deposit to account section below, turn on the Define “Deposit To” account for payments toggle.

6. Set Account for payments to your clearing account (e.g., Stripe bank account).

7. Click Save on both sections.

Step 3. Record Stripe payouts as transfers

When Stripe deposits funds into your bank account:

1. In QuickBooks, create a transfer from Stripe bank account to your actual bank account.

2. Enter the payout amount from your bank statement.

Tip

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

Step 4. Handle offline payments

When you record an offline payment in TaxDome and select Sync to QuickBooks, it will deposit to your Stripe clearing account. This is problematic because offline payments are typically recorded when a client paid via a method other than Stripe (such as cash, check, or an external card terminal).

To avoid this:

1. When recording offline payments in TaxDome, do not select Sync to QuickBooks.

2. Go to QuickBooks and match the payment to the invoice manually.

How Stripe fees show up in QuickBooks

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

1. Go to Expenses & Bills > Expense transactions.

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

You will see the Expense account you configured in step 2 (e.g., Stripe bank account) displayed as the Payment account, and the Expense payment category (e.g., Commissions & fees) displayed as the Category in the QuickBooks expense details.

The Stripe bank account balance will be net of fees, matching what Stripe deposits to your operating account.

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