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Established Community Backer ***

Have you ever wondered how to successfully bookkeep your payment providers deposits including Worldpay, Stripe or Sumup?

Payment providers.PNG

 

Hi everyone,

 

I hope all is well. I haven't posted on here in a while as it was a busy January what with tax return month! I have had a few clients this week asking me how to book keep their payment providers deposits including Worldpay, Stripe and Sumup amongst any others. I decided to create a playlist as I felt that this was easier to explain through a screen share tutorial than rather trying to explain over the phone how it works. Please find the playlist through the link below: 

 

Payment providers deposits and fees

 

Let me know your thoughts! 

 

Emily Mockett 

1 REPLY 1
Established Community Backer ***

Re: Have you ever wondered how to successfully bookkeep your payment providers deposits including Worldpay, Stripe or Sumup?

It is great that you clearly avoided assigning this difference as customer-related. However, it should be noted that the Payment Settlement Entities all work a bit differently. For that reason, I like to track them as Bank Type. The Sales Receipt or the Payment for invoices is Deposited to the Bank account named for the payment service provider. Now I can enter any expense I incur for that provider as Check Expense from their own Bank account; this allows me to enter it per transaction or monthly, or whatever cycle the provider uses for my fees as bank expense. Then, any settlement to Real operating bank is just a transfer of the amount from one sale as net, or from an agglomerated amount, or even the amount I initiate, to fund my operating checking from my other fund sources which are acting as one of my financial institutions. For instance, Amazon and PayPal handle your funds as Pending and Available, and they provide a statement. I want to Manage the funds in QB to match their management of my funds and reconcile to their statements, their ending balance for my account, and to watch for missing sales and settlement errors, additional fees, etc. And in the US, we have a potential to receive a "1099-k" from from these Payment Settlement Entities, under specific conditions, reported to us and the IRS for gross activity through that entity. By managing each as a Bank Type, I get to manage it the same as they are managing it.