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Level 1

Recording Square Payments

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. 

Solved
Best answer March 07, 2019

Best Answers
Moderator

Recording Square Payments

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-w....

 

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.

View solution in original post

10 Comments
Moderator

Recording Square Payments

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-w....

 

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.

View solution in original post

Level 1

Recording Square Payments

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

QuickBooks Team

Recording Square Payments

Hi @MichaelDougherty,

 

I'll take care of this query for you.

 

For QuickBooks Online (QBO), you have the option to connect Square so you can seamlessly import transactions. You can visit the QuickBooks Apps Store to look for an app that allows you to sync Square transactions.

 

A full set of instructions on how you can go about and connect Square to QBO is in this article: Sync Square with QuickBooks Online. Scroll to the Before you start section to see things you need to consider before you proceed. 

 

When done, take a look at this article: Sync with Square - Default Accounts and Names. It's a table of accounts alongside their names so you can familiarize yourself with how it works within QBO. 

 

Drop me a comment below if you have any other questions. I'll get back to you as soon as I can. 

Level 1

Recording Square Payments

Thanks @Ryan_M! I should have added (been more specific) in that I'm looking to accomplish the same things (account for customer payments, collected by Stripe, where Stripe keeps its fee before depositing the final amount to our bank account).

 

Example: $100 invoice to customer (created/auto settled in Stripe), $5 Stripe fee kept by Stripe, $95 deposited to our bank account.

 

I can manually create the $100 invoice, but how do I account for the $5 Stripe fee? And then how do I match the $95 to the $100 invoice?

 

Thanks

Moderator

Recording Square Payments

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.

Level 15

Recording Square Payments

@MichaelDougherty 

Explore this connector to reconcile Stripe data automatically into your QBO.

https:// synder.grsm.io/quickbooks

 

Level 1

Recording Square Payments

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!

Moderator

Recording Square Payments

It's good to see you back, MichaelDougherty.

 

Yes, you can account the Stripe fee as a single expense. Just follow the steps provided by my colleague MaryLurleenM to create the deposit. 

 

Once done, you'll now be able to match the transaction created to the one downloaded from your bank on your bank feeds. See this guide when matching the transaction: Categorize and match online bank transactions in QuickBooks Online.

 

For future reference, you may find this link helpful: Setup bank rules to categorize online banking transactions in QuickBooks Online.

 

If you need further assistance when using QuickBooks, visit again in the Community space. I'll be more than happy to answer it for you. Take care.

Level 1

Recording Square Payments

hi Mary

you seem to know what you are talking about but some of the steps don't match up ?

is there anyway you can call me and help me PLEASE ?

my name is Adam S Goldstein

[Removed]

 

i am desperate for HELP !

QuickBooks Team

Recording Square Payments

Let me take it from here, Adam S Goldstein.

 

As much as we'd like to call and help you, we're unable to do that. The Community is a public forum. We're not allowed to ask for any personal information from our customers for security purposes. Thus, I deleted your number on the original post.

 

Although, you can provide us with more information regarding your concern so we can help you. 

 

Or, you can reach out directly to our customer care support. This way, an agent can easily walk you through the steps. Here's how:

  1.  Click Help inside QuickBooks Online.
  2. Select Talk to a human.
  3. Enter "Recording square payments" in the Type something field.
  4. Click I still need a human.
  5. Select Contact us.
  6. Choose between Messaging or Callback

You can always get back to us with more information, though. We're just one post away. 

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