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I use izettle for taking card payments, how do I set this up in quickbooks essential online.

I charge a client £40 and then take a card payment, the £40 goes into izettle accounts and izettle will deduct their 2.75% fee & transfer the balance to my business current account, ie £38.90 in this case. How do I set this up.

I need to know the total cost of fees at the end of my business year and have this entered into the profit and loss.

I also need to show I've charged the client £40 but only received £38.90.

I would like to be able to enter in a % as a fee rather than calculating it and entering in the money received each time.

16 REPLIES 16
QuickBooks Team

Hi travorpace, You would be best to record these transa...

Hi travorpace,


You would be best to record these transactions using the Undeposited Funds account to receive the full payment from the Customer to settle the invoice amount. Then when iZettle transfer the balance minus their fee to your bank, use a Bank Deposit to move the funds from Undeposited Funds to the bank account minus iZettle's fee.


The fee would have to be added as a minus figure ie -£2.75 rather than a percentage using the Add New Deposits line on the bank deposit screen and you can deposit this fee to an expense account for iZettle under the Account column on the deposit. You can set this expense account up within the Chart of Accounts if you haven't done so previously and run reports on this expense account to calculate the costing to your business.


Let me know if you have any queries. Or, if you'd like to go through this over the phone, you can call our dedicated team who will be happy to assist you. Our contact details can be found here along with our opening hours. 

Not applicable

That is not a good solution. Instead, set up iZettle as a...

That is not a good solution. Instead, set up iZettle as a bank account in QBO and record the £40 receipt from the client in the izettle bank account. Then you can enter two further transactions:
1) charge of £1.10 to card fees
2) transfer of £38.90 from iZettle to business current a/c
Whilst the method using undeposited funds will work for a few simple transactions, it will quickly become very messy when you get multiple payments a day merged into a single transfer to the bank. Even if you only take no more than one a day, it is always better to treat each bank as a separate entity in QBO. As iZettle is just another bank, it should be treated as such.
Not applicable

That makes sense but what about VAT?  How should that be...

That makes sense but what about VAT?  How should that be recorded?
Not applicable

VAT should be handed in the normal way, by raising a sale...

VAT should be handed in the normal way, by raising a sales invoice or sales receipt that includes VAT. Whether the client pays you by iZettle or into your bank account will not impact how you record the sale and output VAT in any way.
Active Member

Re: I use izettle for taking card payments, how do I set this up in quickbooks essential online.

I would wait for the transaction to hit your main bank account and then just split the bank transactions, so gross up for the sales and use the VATapplicable VAT code and then put a -ve in for the card fees and again, use the relevant VAT code.

 

I would not mess about with creating bank accounts etc.

Community Contributor *

Re: That is not a good solution. Instead, set up iZettle as a...

Actually, grouping multiple transactions into one bulk deposit is just what Undeposited Funds is for. All the payment processor related apps/plugins use it for just this to automate the process. Only I'm not aware there is one for iZettle. A bank account would only make sense if a) you can hold a balance and spend from iZettle and b) there was a bank feed integration.

Active Member

Re: I use izettle for taking card payments, how do I set this up in quickbooks essential online.

Hi,

We are completely new to Quickbooks - we use izettle for all sales but have just found out that it is not supported on Quickbooks! Please can I ask how you manage to record your izettle sales, is it done manually?

 

Many thanks,

Jill 

QuickBooks Team

Re: I use izettle for taking card payments, how do I set this up in quickbooks essential online.

Welcome to the Intuit Community, @lskitchen

 

Yes, you'll need to manually record your iZettle sales since the integration with QuickBooks Online (QBO) is currently unavailable.

 

@charlie5 is correct that you need to set up iZettle as a bank account in the program. 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 and Detail types and make iZettle as the name. 
  4. Click Save and Close

 

Then, you can follow the steps provided by my pear above, @GillN, on how to record your iZettle sales. 

 

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

Frequent Contributor *

Re: I use izettle for taking card payments, how do I set this up in quickbooks essential online.

I have the same issue. Can I ask, when setting up iZettle as a bank account what do I enter for detail type.  Current or cash on hand?

Thanks in advance.

QuickBooks Team

Re: I use izettle for taking card payments, how do I set this up in quickbooks essential online.

Hi there @clivetheplumber6,

 

Allow me to join in on this conversation to provide some insights on setting up iZettle as a bank account.

 

I'd suggest selecting Current as the detail type. Cash on hand is another name for petty cash, so I won't recommend it in this situation.

 

For the whole process of creating this bank account, you can refer to the steps provided by @RaymondJayO above.

 

In case you need to troubleshoot your Account Receivables balance not matching the report, refer to this article: AR balance on the Chart of Accounts does not match AR balance on reports.

 

Feel free to drop a comment below if you have any other questions.

Experienced Member

Re: I use izettle for taking card payments, how do I set this up in quickbooks essential online.

Hi

I've been reading the thread about how to reconcile payments made via iZettle in QuickBooks Online. There seems to be some confusion about whether to record the income in the Undeposited Funds account or to set up iZettle as an account in its own right.

Can anyone clarify the best way to do this? I'm having trouble matching invoices to received amounts as the fees are taken by iZettle prior to depositing the amount in our back account.

I'd appreciate any advice on this.

QuickBooks Team

Re: I use izettle for taking card payments, how do I set this up in quickbooks essential online.

Hello Louise

 

If the fees are taken prior to the amount being deposited to the account. We would normally suggest using the undeposited funds.Do you create an invoice in QuickBooks for the full amount without the fee?If so it would be a case of going to receive payment on the invoice to the undeposited funds account.

Then going to bank deposit in the + symbol in the top right>selecting the bank account and date the money was paid in>ticking the transaction>then on the line add funds to this deposit entering the  supplier name,expense account and amount for the fee,making sure to put a minus symbol before th amount.Then when you save it will deposit only the amount received into your bank.You can then match in the banking.

 

Currently at the moment Izettle is not an bank account you can add into QuickBooks though you could import a CSV if you wanted to bring through the full amount inclusive of fee.

 

Emma

 

 

Experienced Member

Re: I use izettle for taking card payments, how do I set this up in quickbooks essential online.

Hi Emma

Thanks for the quick response.

Yes, that's correct, fees are taken before being deposited to the account but we create an invoice in QuickBooks for the full amount without the fee.

 

So, as we understand, we open the invoice to receive payment, select online banking as the payment method and then select deposit to undeposited funds.

 

Where we're struggling with is that we can't find 'bank deposit' in the top right cog. Which screen do we need to be in to do this? The deposits from iZettle are currently sitting in the Banking screen but we can't see how to move them to match them to the invoices in the undeposited funds account, or where to add the fees.

Thanks!

QuickBooks Team

Re: I use izettle for taking card payments, how do I set this up in quickbooks essential online.

Hello Louise

 

I apologise the bank deposit section  is in the + symbol in the top right.You should then be able to follow the other steps in the post above but if you have any questions let us know

 

Thanks

 

Emma

Experienced Member

Re: I use izettle for taking card payments, how do I set this up in quickbooks essential online.

Ah ha! That makes more sense. Thank you Emma.

However, all of the deposits that come into my bank account from iZettle are now showing the name of the customer to whom we matched the first payment. How do I stop this from happening? QBO keeps trying to match payments to an invoice that has already been paid.

Thanks again!

QuickBooks Team

Re: I use izettle for taking card payments, how do I set this up in quickbooks essential online.

Thanks for getting back to the Community, @louisestevens1.

 

Allow me to chime in and provide some additional information about matching transactions in QuickBooks Online (QBO). 

 

Once the invoice transaction is already paid, and the Register status is not yet Cleared (C) or Reconciled (R), QBO will automatically match the bank transactions that correspond to any of these factors: the date, amount, and account.

 

You have an option to unmatch a bank transaction by following these steps:

  1. Go to Banking.
  2. Select the blue tile for the account you want to review.
  3. Click the Reviewed tab.
  4. Find the transaction you want to unmatch.
  5. Select the blue transaction link in the Added or Matched column to see the matched transaction.
  6. Select Undo from the Action column. The transaction will go back to the For Review tab.

For additional reference, you can check these articles to learn more on how to add, match/unmatch, and reconcile in QBO:

Please know that you're always welcome to post if you have any other questions about matching transaction in QBO. I'd be happy to answer them for you. Wishing you and your business continued success.