cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Everything you need to know about banking in QuickBooks Online - Discover more
Neil_9
Level 1

Taking iZettle card reader payments

Hi everybody I wonder if anybody can help me get my head around how I am supposed to use the card reader with my QuickBooks account. First a little bit of information about what I do as a business and this might help you understand how I intend to use QuickBooks with iZettle. I’m Autoelectrician And I work mobile going around garages and private customers helping them with their cars problems. I always issue an invoice from QuickBooks detailing all the information of what I’ve done to the cars including any parts used et cetera. Most garages pay bank transfer or cash but I’ve noticed recently that one or two private customers don’t have cash and don’t have Internet access or at least Internet banking, so I’ve acquired this iZettle card reader to help me out in those situations.

I’ve read numerous posts about how to integrate the card reader accounting system into QuickBooks but I can’t seem to find a solution that fits and is one which allows me to continue to send an invoice to my customer from QuickBooks, and then take a card payment which I can then apply to the invoice as payment later when it gets imported by the bank ( minus in fees ). 

I don’t know whether to use the integration option in iZettle because as far as I can tell all the payments of one day are grouped into a single invoice and imported into QuickBooks which is no good for me if My customers want an invoice for the work I’ve done. If I make And send invoice in QuickBooks anyway and then take A iZettle card payment am I going to end up with a duplicate invoice, the original one I made and the one that I settle has made to account for the payment? Or should I avoid integration and enter everything manually in which case how do I do this? by the way I’m using the mobile app because I’m only mobile. 

regarding integration I’ve set up all the accounts as stated in the instructions. I made up a small invoice in qbo of £1.20 and paid using my card, five days later £1.18 turns up in my business account but none of the integration features have responded to create a expense of 2p so I’m left with a £1.20 invoice outstanding £1.18 coming into my bank account.

What do I do please?

Solved
Best answer June 04, 2021

Accepted Solutions
Rea_M
Moderator

Taking iZettle card reader payments

I appreciate the complete description of your concern above, @Neil_9. With that, I can provide the appropriate solution in managing your iZettle payments in QuickBooks Online (QBO).

 You can opt to enter everything manually in QBO.  Here's how:

  1. Go to Accounting from the left menu. 
  2. On the Chart of Accounts tab, select New at the upper right.
  3. Choose the Account  type expense and select nearest Detail for the fees and make iZettle fees as the name. 
  4. Click Save and Close

 

I've attached screenshots below for your reference.

 

 

After creating your invoice, you need to record their payments using the Undeposited Funds account (i.e., £1.20). Then, when iZettle transfers the balance minus their fee to your bank (£1.18 ), use a Bank Deposit to move the funds from Undeposited Funds to your bank account. The fee would be added as a minus figure (i.e., -£.02) using the Add funds to this deposit line on the bank deposit screen and record it as an expense account for iZettle. Please see the attached screenshot below for your reference.

 

Also, I encourage you to reconcile your iZettle account every month. This way, you can effectively monitor your transactions and detect any possible errors accordingly. For the step-by-step guide, you can refer to this article: Reconcile an account in QuickBooks Online.

 

If you have follow-up concerns about this or should you need anything else, please let me know. I'll be around to help, @Neil_9.

View solution in original post

John C
QuickBooks Team

Taking iZettle card reader payments

Hi Neil_9 A If you're receiving the transactions into your bank account then yes, apologies, you'd have to set up an expense account, relating to the iZettle fees, that then is included in the deposit, in the account column of the 'add funds to this deposit' section and add the amount of the fees as a negative.

View solution in original post

5 REPLIES 5
Rea_M
Moderator

Taking iZettle card reader payments

I appreciate the complete description of your concern above, @Neil_9. With that, I can provide the appropriate solution in managing your iZettle payments in QuickBooks Online (QBO).

 You can opt to enter everything manually in QBO.  Here's how:

  1. Go to Accounting from the left menu. 
  2. On the Chart of Accounts tab, select New at the upper right.
  3. Choose the Account  type expense and select nearest Detail for the fees and make iZettle fees as the name. 
  4. Click Save and Close

 

I've attached screenshots below for your reference.

 

 

After creating your invoice, you need to record their payments using the Undeposited Funds account (i.e., £1.20). Then, when iZettle transfers the balance minus their fee to your bank (£1.18 ), use a Bank Deposit to move the funds from Undeposited Funds to your bank account. The fee would be added as a minus figure (i.e., -£.02) using the Add funds to this deposit line on the bank deposit screen and record it as an expense account for iZettle. Please see the attached screenshot below for your reference.

 

Also, I encourage you to reconcile your iZettle account every month. This way, you can effectively monitor your transactions and detect any possible errors accordingly. For the step-by-step guide, you can refer to this article: Reconcile an account in QuickBooks Online.

 

If you have follow-up concerns about this or should you need anything else, please let me know. I'll be around to help, @Neil_9.

Neil_9
Level 1

Taking iZettle card reader payments

Hi, thank you for the reply. i forgot to mention that i am charging VAT, does this affect your instructions at all?

 

Neil_9

LollyNino_C
QuickBooks Team

Taking iZettle card reader payments

It's nice to see you again here in Community, @Neil_9

 

As long as the VAT is only applied to all sales transactions while the deposit from iZettle to the business bank does not have a VAT it will not duplicate any VAT transaction. You should only apply VAT to your invoices/sales receipt. Any payments received must not have any VAT. 

 

Need more information regarding the VAT reverse charge? You can check these resources for guidance and details how:

If you have other questions concerning VAT, please feel free to post them here. I'll be glad to answer them.

Neil_9
Level 1

Taking iZettle card reader payments

Hi thanks for the reply-

 

I might be wrong but When the creating the iZettle account, you show that it is a cash in hand or at bank type account, but should it not be an “expense” account with the detail “bank charges” instead?

John C
QuickBooks Team

Taking iZettle card reader payments

Hi Neil_9 A If you're receiving the transactions into your bank account then yes, apologies, you'd have to set up an expense account, relating to the iZettle fees, that then is included in the deposit, in the account column of the 'add funds to this deposit' section and add the amount of the fees as a negative.

Need to get in touch?

Contact us