QuickBooks Integration (Basic): Include Stripe Fees to Keep Balances Accurate
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Note: This section is for Stripe secure credit 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.
When a client pays you online, a Stripe processing fee is deducted from the payment. This results with the payment amount on your bank statement being less than the payment amount 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 do the following:
- Step 1. Add a Bank Payment Account in QuickBooks
- Step 2. Add an Expense Account in QuickBooks
- Step 3. Set up Expenses for Stripe Fees on TaxDome
Step 1. Add a 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 Bookkeeping, 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 an Expense Account in QuickBooks
Stripe charges you a fee for processing credit cards. To simplify accounting for these fees, add a new expense category.
Go to Bookkeeping, then to Chart of Accounts, click New, then create an Expenses category named, for example, Merchant Fees - Stripe 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 your Settings page from the left sidebar, then select the Integrations tab and go to the QuickBooks subtab.
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. Merchant Fees - Stripe) in the Expense Account dropdown. Notice that the dropdown shows only expense accounts.
4. Choose the Commissions & fees (Expense) from the Expense Category dropdown. Notice that the dropdown shows only expense categories.
5. Click Save to keep changes.
Going forward, Stripe processing fees for online payments will be sent as separate entries to the selected account on QuickBooks while keeping the balance the same as that of your bank statement’s. You can view the entries for processing fees by Run report to the right of the account name.
