Stripe Deposit & Taxes

Hi redsmoore,

Entering your transactions the right way is a good exercise for preventing errors in your books. I'd be happy to steer you in the right direction so you can focus on doing the things you love. 

To ensure accuracy in your books, I recommend contacting an accounting professional to get more info on recording the transactions. Doing this will help prevent any future discrepancies in your books. If you're not in contact with one, I encourage you to search for one on our website using this link here.

I'll leave this question open so other accounting professional members can chime in. Let me know if you have other questions. I'm here to help.

Hello @redsmoore ,

What you are describing is maybe a bit confusing and what you want to accomplish might better be done using the built-in conveniences of QBD Pro, as well as honoring accepted accounting methods.  First of all, sales & taxes shouldn't be recorded in a deposit screen.  They should be recorded using a sales form; either an invoice or a sales receipt.  I would suggest using an Invoice, and creating a customer called Cash, Stripe Sales, Internet Sales or whatever you deem appropriate.  Using an invoice will allow you to receive funds against an invoice, and then make adjustments to the deposit screen to account for Stripe's fees.

Then, presuming you have set up tax codes and tax items for all the jurisdictions you are registered to collect tax in, you would use those codes on your sales lines in the invoice.  This necessitates you setting up a sales "item" to use on the invoice, which is linked to the G/L Sales account you want to use.  The entries on your invoice might look something like:

Sales                    Amount                  Tax Code                                    Tax Amount

Internet Sales       200.00            HON (Ontario HST)                           26.00 (calc'd by QB based on Tax Item)

Internet Sales       100.00           SKBOTH (SK GST & PST)                11.00

Internet Sales       500.00                ABG (Alberta GST)                       25.00

etc. etc.

This way, you will have a record of taxes for each jurisdiction and which can be paid using the built-in sales tax features in QBD.

When you receive payments through Stripe, (Stripe would be set up as a payment method), you would receive the payments to the "Undeposited Funds" account (simply a holding tank for all funds until you deposit them to your bank account).  After recording your "Receive Payment", you would go to the Deposit form and make deposits that represent exactly what happened in your bank account each day, so that the transactions match and can be easily reconciled.  Line 1 of your deposit will pull from the payments you received; you can add as many payments to one deposit as necessary to match the deposit in your bank.  Once you have brought in all the lines you want in your deposit form, go to the next line and enter a negative amount to account for your "Bank/CC Fees" expense (which is usually deducted from the amount Stripe deposits to your account), using the appropriate G/L expense account from your COA.  The net amount of your deposit form should match that day's bank deposit exactly.

I'm not sure why you would have an "ending" amount . . . can you explain further?

Hi

I am also trying to enter Stripe sales into QBO so that the Stripe Balance reports reconcile with my bookkeeping. 

It makes sense to "deposit" Stripe account activity before fees into a Stripe Bank Account in QBO. This would work the same as using the Undeposited Funds Account.

I'm wondering when you would enter the GST collected on the Stripe Sales. Do you enter the taxes when the sales are posted to the Undeposited Funds Account (or Stripe Bank Account) or when you transfer the amount to the correct bank account.

Because, when the Stripe Payout hits the actual bank account, it includes the taxes that were charged on the sales. So if you extract tax on the initial post, the payout amount which you would move from the Undeposited funds will be messed up.

I may have answered my own question here....any thoughts?