Stripe QuickBooks Integration How to Connect QuickBooks to Stripe?

by James Antonio Marketing Head

When it comes to processing payments, businesses are not limited to using outdated legacy platforms. With the right software, organizations can seamlessly integrate older systems with newer ones. This is especially true when it comes to synchronizing the Stripe platform with QuickBooks Online.

The Stripe and QuickBooks Connection

Stripe and QuickBooks are both widely-used tools for handling digital payments. Stripe is a payment processing solution suitable for any company conducting online transactions. Stripe QuickBooks Integration allows users to pay invoices and automate Stripe transactions within the QuickBooks environment.

Stripe caters to businesses of all sizes, ranging from small startups to large enterprises. On the other hand, QuickBooks primarily serves small and medium-sized companies, although it does accommodate some smaller enterprise customers within its 20 or 25-user limit.

While Stripe can integrate with both QuickBooks Online (QBO) and QuickBooks Desktop by Intuit, this article will focus on the Stripe to QBO integration.

How to Add Stripe to QuickBooks Online?

To get started, you'll need to set up both a Stripe and a QuickBooks Online account before proceeding with the integration. It's important to note that Stripe doesn't own the third-party QBO Stripe integration apps. Some Stripe apps also provide integrations with PayPal and Square.

App Integration

Businesses can find these integration apps within QuickBooks Online, QuickBooks Online Accountant (for each client), or through the QuickBooks App Center. Follow the steps outlined by your chosen third-party app to connect Stripe to your QBO account.

In QuickBooks Online, follow these steps:

· Select "Apps" from the left-side navigation menu.

· Search for Stripe apps.

· Click on each app tile to review their features and user reviews to choose the most suitable one for your e-commerce business.

When searching for Stripe third-party apps in QuickBooks, you'll encounter offerings from various companies. Always check customer reviews before making a selection. Reputable brands typically have a wealth of positive feedback. You can also explore third-party companies like Automate.io (which may not appear as a third-party app in QuickBooks) or seek recommendations from the Stripe technical support team regarding third-party integrations.

E-commerce businesses can also configure Stripe as the payment method in Shopify, providing a convenient integration between the two platforms.

Recording Stripe Payments in QuickBooks

While it's possible to manually record Stripe transactions in QuickBooks Online without a third-party app, this process can be less efficient. Automating the recording of Stripe transactions in QBO through app integration justifies the additional SaaS subscription fees. By doing so, you save time by eliminating manual data entry.

Sales receipts generated through this integration include a line item for sales tax, ensuring accurate accounting for sales transactions processed via credit card payments through Stripe. QuickBooks Online without Stripe to QBO integration only supports Excel and CSV file formats for data import. QuickBooks Online support recommends either exporting data from Stripe in CSV format or copying Stripe data to Excel before importing it into QuickBooks Online if you don't use a third-party integration app.

In the following section, the help center of a third-party QBO app called Synder explains how to record Stripe transactions by syncing them to a "Stripe" bank account in QuickBooks. Each third-party integration app may have different synchronization methods. The initial steps cover connecting your bank account, syncing data, and recording Stripe transactions.

Reconciling Stripe Payments in QuickBooks

After syncing data from Stripe to QuickBooks Online, it's essential to reconcile the Stripe payments received with the processing fees deducted by Stripe for each successful credit card transaction. Dancing Numbers, a third-party app for QuickBooks Online, provides step-by-step instructions for reconciling Stripe transactions in QuickBooks. According to Dancing Numbers:

"Our customers have found that the most accurate way to record all Stripe sales, fees, and refunds is to sync everything into a bank account in the QuickBooks Chart of Accounts and enable payouts processing for reconciliation-ready matches between Stripe transactions and withdrawals made to your checking."

Dancing Numbers illustrates a bank account labeled "Stripe bank account" as your checking account, where payouts from Stripe are deposited. The Stripe payment method selected is configured for QuickBooks sales receipts, refund receipts, payments, and expenses.

Here are the steps provided by Dancing Numbers for reconciling Stripe transactions:

1. Create a QuickBooks Online "Stripe" checking account or let Dancing Numbers automatically set it up.

2. Enable pay-outs and choose your checking account for depositing Stripe Pay-outs in the Dancing Numbers dropdown menu for "Transfer Funds To."

Manually sync Stripe transactions or set up an auto-sync.

In the "For Review" list in the QuickBooks Banking menu, click "Match" next to each Stripe payout. Keep in mind that funds may not appear in your bank account until 3-7 days after Stripe processes the payment.

Reconcile your checking account used for Stripe with your automatically recorded transactions synced from Stripe to QuickBooks Online.

Accounting for Stripe Fees in QuickBooks

Stripe charges transaction processing fees for integrated accounts, which come with numerous features. The standard Stripe transaction fee is 2.9% plus 30 cents per successful card charge. These fees are deducted by Stripe from its payouts. With third-party app integration, Stripe processing fees for card payments automatically sync to QuickBooks Online.

Additionally, Stripe offers custom pricing options through quotes provided by their Sales department. Custom pricing is suitable for businesses with large payment volumes or unique business models, offering benefits such as volume discounts, interchange pricing, multi-product discounts, and country-specific rates.

Integrating and Syncing Stripe with QuickBooks

To seamlessly QuickBooks Stripe Integration, consider using a third-party add-on app or an app with multiple connectors to automate workflows and data synchronization between applications. Follow the instructions provided by the third-party app to integrate, sync, automate the recording of Stripe transactions and fees, and reconcile the connected bank account.