Skip to main content

Get 50% OFF QuickBooks for 3 months*

Buy now
Switch to QuickBooks and 70% off for 3 Months
Talk to Sales: 877-683-3280
Hours
Mon - Fri, 5am - 6pm PST
Sat - Sun, 7am - 4pm PST
Product support & help
Need help signing in?
B
brewbro
March 7, 2019
Solved

Recording Square Payments

  • March 7, 2019
  • 1 reply
  • 25 views

Hello,

 

I am manually entering Square sales into my Quickbooks Desktop. I do not have the integration anymore because it caused more issues with syncing than it should have. Square is depositing Net Sales into my bank account. I have my bank account feed attached to my Quickbooks. The Net Sales deposited into my account already have Square fees taken out of them. How do I account for the Square fees with this approach? 

 

Thank you. 

Best answer by Rose-A

Greetings, brewbro.

I'd be glad to lend a hand in accounting your Square fees via QuickBooks Desktop.

 

Receive payments for the amount of the sales receipt/invoice, a group with undeposited funds. When funding and fee status are known to make deposits, select your Square payment on the next line of the deposit enter the Square fees as a negative amount and assign to your processing fee expense account. 

 

Here's how:

 

  1. Click Banking at the top menu, select Make Deposits.
  2. In the Payments to Deposits window, select the payment/s that was deposited separately, then OK.
  3. In the Make Deposits window, on a blank line, select the overstated income account from the From Account column drop-down.
  4. Enter the negative amount in the Amount column. Make sure the Deposit subtotal is zero.
  5. Select Save and close.

You can check out this recommended article: https://quickbooks.intuit.com/community/Help-Articles/Understand-how-the-Undeposited-Funds-account-works/m-p/203721.

 

This will get everything nice and organized in your QuickBooks Desktop account. Let me know if there's anything else you need with accounting your Square fees. Have a good one.

1 reply

Rose-A
Rose-AAnswer
Level 10
March 8, 2019

Greetings, brewbro.

I'd be glad to lend a hand in accounting your Square fees via QuickBooks Desktop.

 

Receive payments for the amount of the sales receipt/invoice, a group with undeposited funds. When funding and fee status are known to make deposits, select your Square payment on the next line of the deposit enter the Square fees as a negative amount and assign to your processing fee expense account. 

 

Here's how:

 

  1. Click Banking at the top menu, select Make Deposits.
  2. In the Payments to Deposits window, select the payment/s that was deposited separately, then OK.
  3. In the Make Deposits window, on a blank line, select the overstated income account from the From Account column drop-down.
  4. Enter the negative amount in the Amount column. Make sure the Deposit subtotal is zero.
  5. Select Save and close.

You can check out this recommended article: https://quickbooks.intuit.com/community/Help-Articles/Understand-how-the-Undeposited-Funds-account-works/m-p/203721.

 

This will get everything nice and organized in your QuickBooks Desktop account. Let me know if there's anything else you need with accounting your Square fees. Have a good one.

M
MichaelDougherty
September 30, 2020

How do you manage the same process within Quickbooks Online? Thanks!

M
MichaelDougherty
October 1, 2020

Thank you for the additional information, MichaelDougherty.

 

We can add the Stripe fee as we deposit the invoice payments. Here's how:

  1. Open the invoice and click the Receive payment button.
  2. Enter the Payment date and the Payment method.
  3. Select Undeposited Funds in the Deposit to field.
  4. Click Save and close.
  5. Click the + New button and select Bank deposit.
  6. Select the bank account in the Account field and enter the Date.
  7. Under the Select the payments included in this deposit section, mark the invoice payment.
  8. Go to the Add funds to this deposit section, and select the bank fee account in the ACCOUNT column.
  9. Enter the bank fee as a negative amount and click Save and new.

Then, you can create an expense account for the processing fee to resolve the difference between the invoice and the payment when matching transactions from your bank feeds. Here's how:

  1. Click on Accounting at the left panel, select Chart of Accounts.
  2. Select New.
  3. In the Account dialog, create an Expense account for Stripe Fees, and add the name.
  4. Click Save.

Then, when matching the transactions:

  1. Click on Banking at the left panel.
  2. Select the appropriate bank account from the list.
  3. Locate and select the transaction in the For Review tab, then select Find Match.
  4. In the Match transactions window, select the checkbox of the appropriate Invoice.
  5. Select Resolve Difference to open the Add resolving transactions field.
  6. Select Add new transaction.
  7. From the drop-down list in the Category field, select the Bank Fees (processing fee) expense account you created.
  8. Enter the negative Amount of the bank/processing fee.
  9. Click Save.

Learn more about matching transactions in QBO: Match and categorize your downloaded bank transactions.

 

Let me know if you have other questions.


Thanks @MaryLurleenM for your detailed answer. We have 2 customers and received a single deposit from Stripe. Can we account for the Stripe fee as a single expense (instead of having to split it)? And how would the matching of the deposit work for that? Thanks!

Need QuickBooks guidance?
Log in to access expert advice and community support instantly.
Terms & ConditionsAccessibility statement