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. 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.

Note

If payment technology fees are enabled, they’re also synced to QuickBooks Online as separate expenses. When a client pays an invoice with a technology fee, QuickBooks Online records the payment for the invoice amount only, while the fee is logged separately as an expense.

4. In the Expense settings subsection:

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

   b. Set Expense payment 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 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., TaxDome Payments Clearing).

7. Click Save on both sections.

Step 3. 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

When you record an offline payment in TaxDome and select Sync to QuickBooks, it will deposit to your TaxDome Payments Clearing account. This is problematic because offline payments are typically recorded when a client paid via a method other than TaxDome Payments (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 Online and match the payment to the invoice manually.

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 account you configured in step 2 (e.g., TaxDome Payments Clearing) displayed as the Payment account, and the Expense payment 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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