Reconciliation is a vital part of managing your finances, especially when it comes to online payments. If you’re using Stripe to handle transactions, you might be wondering how to reconcile Stripe Payments in Xero effectively.
Fortunately, it’s simpler than you might think! This process not only helps ensure your financial records are accurate but also gives you a clear picture of your business’s cash flow.
In this guide, we’ll walk you through the steps to seamlessly reconcile your Stripe payments with Xero, making your accounting tasks a breeze. Let’s dive in!
Xero is an amazing platform, that allows you to connect with Stripe and take payments. If you accept payment via Stripe and need help with reconciliation, you must follow the guidelines below.
Once you have collected the payment in Stripe, Stripe will transfer the bulk funds into your bank account. From there, you must match the payments against the sales invoices you raised from Xero.
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Payment Received in Xero:
By default, it looks like this, when Stripe transfers appear in Xero
If you are processing multiple invoices per day, this sum is made up of all of those invoices, subtracting Stripe fees.
Step 1
Click the Find & Match button or the link at the top right of a bank statement line (money received)
Step 2
It will display a list of transactions/invoices that can be matched, and tick all the relevant invoices/transactions that are part of the corresponding bank transfer. As you do this, they will appear in the bottom box.
You might have to log in to your Stripe account to get the breakdown of the invoices.
And from there, you will have to choose the relevant transaction to see the breakdown.
Step 3
When you have selected them all, the total will be out by the Stripe fee amount for the day. At this point, you should double check the fees in your Stripe dashboard to ensure everything matches with what you’ve just done in Xero.
Step 4
Then, click the adjustments button in the bottom right-hand corner and select “Bank Fees”.
Enter in all the usual transaction fields as shown below. If you don’t have a “Stripe Fees” account set up, just use “Bank Fees”. For the amount in the right-hand column, it needs to match the red text next to “Total is out by”.
Once the totals match, the Reconcile button will go green and allow you to reconcile all of the invoices you matched.
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Last Words
In conclusion, reconciling your Stripe payments in Xero is a straightforward process that can save you time and ensure your accounts are accurate. By following the steps outlined in this guide, you can easily match your Stripe transactions with your Xero records, helping you maintain clear financial statements.
Remember, regular reconciliation not only keeps your books in order but also gives you a better understanding of your business’s financial health. So, take a few moments to master how to reconcile Stripe Payments in Xero, and you’ll be well on your way to smoother accounting and a more successful business!
Disclaimer: All the information provided in this article on How to reconcile Stripe Payments in Xero? including all the texts and graphics, is general in nature. It does not intend to disregard any of the professional advice.
