I was spending 3+ hours every month fixing Stripe transactions in QuickBooks. Here's the same process I use to do it in less than 10 minutes now
If you use Stripe for payments besides QuickBooks for accounting, the process is difficult.
Every month the steps are repetitive and problematic
You export a comma separated values file from Stripe.
You open QuickBooks.
By hand you match each individual transaction.
It is necessary to determine why the total amounts are inconsistent.
As you work you find that Stripe includes service costs within the payout amount instead of listing them as separate items.
For another hour you correct mistakes in how transactions are categorized.
I followed this method for multiple months until I developed a more efficient workflow.
This is the method that is effective
Step 1 - Do not import the original Stripe file - quickBooks is unable to process the data accurately. Because Stripe exports total amounts and includes service costs within payout summaries, your financial records are incorrect if you import that data directly.
Step 2 - Reconcile based on the payout amount rather than each individual transaction. Each transfer from Stripe to your bank is a net amount. If you match that payout to your bank data in QuickBooks, you can then record the service costs separately as an expense.
Step 3 - Create a specific Stripe clearing account in QuickBooks. Total revenue is added to this account, service costs are removed and the remaining payout is transferred to your actual bank account - this process is transparent and verifiable - there are no longer differences between the totals.
By using this method, the time I spend on reconciliation is much shorter.
To assist with the data formatting, I created a free tool named Stripe QB Converter. It changes Stripe exports into files that are compatible with QuickBooks and ensures service costs are separate.
If you wish to find it, you can use a search engine.
And if you have a different workflow that is effective, please share it.
To improve this process is my constant goal.