Help with Venmo payments

Hello @ stephengroeschel

We appreciate you being part of the QuickBooks Online family. I know learning all of the ins and outs can be tricky. Let me help you with recording Venmo payments.

I see you’ve received the payment, did you put that into Undeposited Funds? If not, you’ll want to edit it so that it is.

For Venmo transactions you'll need to record the invoice payment and deposit it to Undeposited Funds.

This method allows users to create a bank deposit and move the funds to the correct bank account. During the process, you can include the service charges and processing fees.

Here's how:

1. Open the invoice and create a payment to Undeposited Funds.
2.  Hit Save and close.
3. Click the + New option in the upper-left corner, then choose Bank deposit.
4. In the Add funds to the deposit section, enter the fees (ex: -$1.75) to reduce the deposit amount.
5. Press Save and close.

When you enter the fees associated with processing the payment, you’ll want to mark them as received from Venmo. This will allow you to easily see how much you’ve paid in processing fees to Venmo, which are an expense for your business.

If you haven’t already, you will add Venmo as a Vendor to your account. Here’s how:

1. Select Expenses, then Vendors.
2. Select New Vendor.
3. Complete the fields in the Vendor Information window.
4. Select Save.

For more details including a video, check this out: Add a vendor in QuickBooks Online

After following the steps above, you should be able to match the downloaded transactions from your bank with the deposit shown in QuickBooks.

I know this is a lot of information, please don’t hesitate to let me know if you have any additional questions. I’m here to make sure you’ve got what you need.

Have a great day!

Thank you so much for the speedy reply! One more question, what option do I choose when for the "account"? Do I put my bank account to which I made the deposit to?

but sometime Venmo if you received multiple payment in a day and then you transfer the amount in to your bak account it will appear as a whole amount not split. How then I can record that transaction in QBO. For example 3 clients paid me thru Venmo and Venmo deposit $300 in my bank account how I can record does $300 by each costumer so QBO can match with my bank account. Because if I create an invoice for each costumer QBO will not be able to recognized that does costumer belongs to the $300 in the bank account. Unless I am wrong and it might do it. 

Thank you for joining the thread, @Maid LIz.

I'll go ahead and share additional information on how you can Venmo payments in your QuickBooks Online.

You'll need to first create an invoice then record payment to Undeposited Funds.

To create an invoice:

1. Open the Sales menu.
2. Go to the Invoices tab then click on Create Invoices.
3. Fill out all necessary information.
4. Click on Save and send.

To receive split payment:

1. Open the invoice and receive a payment to Undeposited Funds.
2.  Click on Save and close.

After that, follow Step 2 from this guide to combine payments amounting to $300: Record and make bank deposits in QuickBooks Online.

Lastly, match the transaction deposited from Venmo.

For future reference, read this to know more on how to manage invoices in QBO: Customize invoices, estimates, and sales receipts in QuickBooks Online.

We're always here to back you and your business. Just leave your comment below if you need extra help with payments or QuickBooks. Take the best care!

Thanks for posting the solution.  I didn't think to add it as a negative value to the "Add funds to this deposit" section on the bank deposit workflow form.  With that said, I already had Venmo setup as a Vendor for expenses.  When I select Venmo as the vendor then I realized that I want to capture the expense into a "Venmo Expenses" category under the main category already named "Bank Fees."  Can I create this new sub-category under Bank Fees from this workflow or do I need to create the sub-category first then initiate the bank deposit workflow?

We're glad that the solution shared by MonicaM3 works for you, JGTaxPro.

As for creating the sub-category, yes, you can create it in the deposit workflow. Instead of selecting the Bank Fees account, you will need to add the new expense account first. Then, make it as a sub-category for your Bank Fees.

Here's how:

1. In the Bank deposit page, click the Account drop-down list.
2. Select + Add new.
3. When you get the Account window, select the Account Type and Detail Type.
4. Enter the Name "Venmo Expenses" and add the other details.
5. Put a check mark on the Is sub-account box and choose the "Bank Fees" account.
6. Click Save and Close.

For more details about adding the service charges or fees in the bank deposit window, please go to the Include bank or processing fees section in this article: Record and make bank deposits in QuickBooks Online.

To add the sub-account in the Chart of Accounts window, the steps are laid out in this guide: Create subaccounts in your chart of accounts in QuickBooks Online.

Please let me know if you have any additional question about the process or need help with other task. I'll be happy to help you out again. Have a good day ahead!

Hello community Quickbook.

I use quickbook online, I am no accounting. I have problems with venmo payment, I will tell you what I do and please let me know what is wrong.

1- make a deposit in qb for venmo

2- transfer the amount to my checking account

3-receive payment of the invoice payment method venmo and deposit to my checking acct

I do this because when i reconcile venmo account I need the deposit and transfer in order to leave venmo account 0.00

But also i notice that I have extra deposit in my chart of account/checking account, but if I delete either transfer or deposit than has difference in the venmo. I did't have venmo conected to qk until a week ago. I have been doing this since a year. but at the end of the year have extra transaction that does not match with any other. Help me please

Thank you for sharing your steps on recording Venmo payments in QuickBooks Online (QBO), @Wen23.

Allow me to provide some information and help you record your Venmo payment correctly in QBO.

First off, please know that Venmo is just a third-party service that sends your money from your accounts to the vendor. With that said, you don't need to create a Venmo account on your QuickBooks and make a deposit every time you received a payment from Venmo.

To properly record the Venmo payments, you can make a deposit directly to your checking account used. Then, add the service fees if necessary.

Once everything is recorded and you're ready to reconcile your accounts, feel free to check out this article for more directions: Reconcile an account in QuickBooks Online. This will surely help you match your QuickBooks transactions to your bank statement.

Let me know how it goes, I want to make sure this is taken care of, @Wen23. Thanks for dropping by!