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Connect and manage Square transactions in QuickBooks Online

by Intuit•3• Updated 2 weeks ago

You can edit, categorize, and match transactions, customers, and products to keep your books on track. Improve bookkeeping accuracy with the Square Connector by QuickBooks, which syncs data from Square directly into QuickBooks Online.

If you need help with transactions, you can partner with QuickBooks Live Experts and feel more confident. Find out more about QuickBooks Live Bookkeeping.

Data synced from Square

Square Connector syncs most of the same details for each transaction in QuickBooks that you see in Square. You import and account for transaction details like Net Amount, fees, taxes, discounts, service charges, products and services, and customer/vendor. 

How to review transactions

Categorizing transactions 

QuickBooks suggests categories for some transactions you'll find on the App transactions page. (Take me there). Check the suggested category, then select Confirm or Add. Sometimes we’ll need more info from you before you can add the transaction. In that case, select Review, and add details as needed.

Match transactions

If the transaction already exists in QuickBooks, you may have the option to match it. QuickBooks may suggest one or more matching records. Select the correct record, then Match. 

Transactions from the Square app contain many details. To save time, we recommend you only add Square transactions through the app. If your bank accounts are connected in the Transactions window, we also recommend adding transactions from the Square app first, then matching those transactions in your online banking center after.

Match items

When importing transactions from Square, QuickBooks matches the items in a transaction to products/services within QuickBooks based on the item name.

  • If the items in the transaction match, QuickBooks uses the product or service.
  • If the item in the transaction doesn't match, QuickBooks uses the default item called Square Sales and updates the description line with the name of the item Square provides.

Note: QuickBooks may not use the item from the transaction because the matching product/service is not a product, but is a product category instead. 

Product category is a feature that lets you group a list of related products/services in QuickBooks Online. Even if the item name in QuickBooks matches with the Square transaction, you can’t use it as a  product/service item within a Sale transaction.

In these cases, you’ll see the default Square Sales line item and the description with the item name from Square. 

Match duplicate items

When you review incoming Square transactions, you can match products and services that appear the same in QuickBooks and Square. Doing this prevents duplicate inventory tracking across both apps.

  1. Go to Transactions, then App transactions (Take me there).
  2. Select the Square tile, then For review.
  3. Select a transaction to see the details.
  4. In Products and services, you may notice the Select match button for a particular item. Select this button to view potential matches.
  5. In the drawer that displays, you’ll see the Square product details side-by-side with potential item matches we found in QuickBooks. Review these to verify a match.
  6. Select the QuickBooks item that best matches the Square item, then select Next.
  7. Select Done. Now you’ve matched the items, and you won’t need to do this process again for this item going forward.

Bulk add or match transactions

You can bulk select incoming Square transactions to add or match them in QuickBooks.

  1. Go to Transactions, then App transactions (Take me there).
  2. Select the Square tile, then the For review tab.
  3. Select the check boxes ☑︎ for any transactions you’d like to add to your books.
  4. A pop-up asks you to Confirm or Exclude the selected transactions. Select Confirm to move all of the selected transactions to the Reviewed tab.

    Note: You may not be able to select Confirm if
    • One or more of the transactions needs Review under the Actions column. In this case, review and confirm these transactions individually.
    • You select Payment received transactions and Payout transactions together. In this case, confirm the Payment received transactions first, then confirm Payout transactions.

You need an active Square account to use the Square Connector by QuickBooks. If you haven't already, create a Square account first. Then you’re ready to get started!

  1. Sign in to your QuickBooks Online account.
  2. Select Apps, then Find apps.
  3. In the search bar, enter “Square Connector by QuickBooks”, then select it when you find the app.
  4. Select Get app now.
  5. Follow the on-screen instructions. Enter your Square account email address and password, then select Log in.
  6. To authorize Square to send your transactions to QuickBooks, select Agree and Connect.
  7. Complete the app settings. You can change these settings later.
    Select the bank account where Square deposits your payouts as the Square Deposit Account. Also remember to select all the Square locations you want to track in QuickBooks.
  1. Select the date you want Square to start importing transactions, then select Sync Now.
    Note: You can import up to 2 years worth of historical transactions.
  2. Once the connection is complete, select Go to App Transactions.
    Your imported transactions should display within a few minutes..
  3. Once your transactions sync, open App Settings. There are more settings available post-connection. We recommend using the defaults to ensure the most accurate accounting, but you can change these at any time to match your business’ needs.
  • Deposit account is the primary bank account you use to move money in and out of Square.
    The Auto-add transactions setting lets the app automatically post transactions to your books. Our AI models learn how you categorize transactions and automatically add transactions with high confidence to your books. 
  • Customer tracking imports the customer name from Square and matches it to your customer list in QuickBooks. If you turn OFF this setting, every sale will default to the Square Customer you select in settings. Leave this setting ON to help you run reports and track sales by customer in QuickBooks.
  • Product tracking - matches the product and service info from Square with your product and services list in QuickBooks. If you turn OFF this setting, every sale will use the default Square Product you select in settings. Leave this setting ON to help you run reports and track sales by products and services in QuickBooks.
  • Vendor tracking matches vendor info from a Square transaction with your vendors list in QuickBooks. If you turn OFF this setting, then the app will record vendor names with the default Square Vendor you select in settings. Leave this setting ON to help you run reports and track expenses by vendors in QuickBooks.
  • Square fees is an expense account that tracks fees Square charges on each sale, as well as any other fees you incur from Square.

You’re ready to go! The Square App and your transactions are available in  App transactions (Take me there).

How to disconnect the app

  1. Sign in to your QuickBooks Online account.
  2. Go to Apps, then the Overview tab.
  3. Find the Square app card, select more options Vertical ellipses icon., then select Settings.
  4. Select Disconnect.
Transaction Type/ItemWhat you'll see in QuickBooks
Income / SalesGross amount, net amount, and fees display for each income transaction. Quickbooks imports detailed line item level data from Square. Each product/service on the sales receipt matches an income account within QuickBooks. You can also match a transaction to existing invoices and sales receipts if you already recorded them in your QuickBooks Online account.
These transactions are labeled Payment received.
PayoutA Square payout is a transfer of money from a Square account to a bank account. Square collects money from all the sales that occurred in a given period. At the end of the period, Square transfers the total amount (minus fees, adjustments, or holds) to your bank account. Typical payouts occur the next business day, so you’ll see a payout for each business day in your Square account and in your Square Connector by QuickBooks app.
You can also match a payout with the deposit from the bank account (in case you have a Square deposit bank account connected to QuickBooks Online). When you add a payout to your books, the app records a bank deposit that automatically links with the individual sales transactions and fees.
Other transactions (Payout entries)When Square sends a payout to your bank account, it also includes some other transactions like App fee revenue, Holds & Disputes, Adjustments, or Square capital payments. These transactions are available in the Payout section Funds in this payout. When you add a Payout to your books, the app records a bank deposit and shows these transactions in the Add funds to this deposit section of that deposit.
FeesFees associated with sales transactions import as an expense transaction with the Sales Receipt.Note: Fees are included in the compound deposit and are categorized into a Square Fees expense account. You won't see the fees separately in the transaction list, or until you add or match a sales transaction to QuickBooks. 
CustomersYou’ll see a suggested customer in the transaction list and get a prompt to create a new customer if they’re not yet in your QuickBooks customer list.
Items (Products / Services)Products/services sync as line items on the sales receipt if the item name in Square and QuickBooks Online match.Otherwise, the items will appear as “Square Sales” on the sales receipt line details. You’ll receive a prompt to match the item name in the Square transaction to an item that already exists in your Products and Services list or create a new item.

Frequently Asked Questions

Why am I seeing so many Payouts?

A Square payout is a transfer of money from a Square account to a bank account. Square collects money from all the sales that occurred in a given period. At the end of the period, Square transfers the total amount (minus fees, adjustments, or holds) to your bank account. Typical payouts occur the next business day, so you’ll see a payout for each business day in your Square account and in your Square Connector by QuickBooks app.

Can I add multiple Square accounts at once?

At the moment, this integration does not support multiple Square integrations at once. Our teams are working on enabling this feature.

Why do some lines have “confirm” and some lines have “review” action buttons?

When the transaction is fully pre-filled, you can choose to add it with one action. You can also verify the details of the transaction by clicking on the line. When an incoming transaction doesn’t have all the necessary info pre-filled, Quickbooks needs you to complete the transaction to confirm and add it to the books.

Where do I find the Square integration settings?

You can find the settings by selecting the three dots ⠇by the Square tile. You can also find Square settings near the transactions grid in your Square app in App transactions.

Can I import historical transactions and what’s the limit?

Yes, upon initial setup, you’llbe asked if you’d like to import up to 2 years of historical transactions. Once you determine the starting date, select Import, and your transactions will start coming into your QuickBooks account.

How often are my Square transactions updated?

Once a transaction is fully processed/completed through Square, it appears in the For Review tab of the banking screen, usually within 2 hours. While you can’t update on demand, we’re monitoring throughout the day for changes to your Square account.

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