Woocommerce Tax and QBO

[swdirect]

I currently use QBO to import bank transactions and reconcile them every month. I only track what goes into the business bank account, but since we’ll need to register for VAT, things are going to get more complicated. What’s the best way to account for Stripe and PayPal fees? Will I need to set up a separate account in QBO for PayPal? I was hoping for an automated solution.

 

[Scalloway]

You should set them up as bank accounts in Quick Books. Because of the nature of our transactions I find it easier to import using CSV files but I can't see why it couldn't be done automatically.

 

[LPB 123]

Quickbooks have free connectors to most platforms and marketplaces and Woocommerce is one. It's free as it was formerly OneSaas and QB (Intuit) bought them.

With this connector and other paid ones you can import all sales individually or in bulk. It can automatically record your fees etc as well.

You would set up a bank account in QB for Stripe and another bank account in QB for PayPal.

The payouts would then be recorded as transfers from those accounts to your main bank account.

 

[swdirect]

You should set them up as bank accounts in Quick Books. Because of the nature of our transactions I find it easier to import using CSV files but I can't see why it couldn't be done automatically.

We also use Clearpay and Klarna, so should I just setup bank accounts for all of them and not bother import

Quickbooks have free connectors to most platforms and marketplaces and Woocommerce is one. It's free as it was formerly OneSaas and QB (Intuit) bought them.

With this connector and other paid ones you can import all sales individually or in bulk. It can automatically record your fees etc as well.

You would set up a bank account in QB for Stripe and another bank account in QB for PayPal.

The payouts would then be recorded as transfers from those accounts to your main bank account.

We also use Klarna and Clearpay, so I’m guessing we’ll need bank accounts for those as well. Is the best approach to avoid importing WooCommerce transactions and just set up the bank accounts for the above? Everything going into them will be sales income, and then we can record the fees as expenses. I’m guessing I’ll have to manually import for Clearpay and Klarna, as I don’t think they have a way to automatically import.

 

[LPB 123]

Yes set up individual bank accounts for those too.

You should still import the bank transactions, as thats the easiest way to keep everything reconciled. But they should be transfers from the respective accounts rather than sales income. You can setup simple rules that will automatically map the transfers from each account to your main account

 

[swdirect]

I was looking at Synder which works with QBO, it's expensive and starts at like £52 a month. Does what I would need, but at quite a cost for a small business :-(

 

[fisicx]

Well you will be able to knock a bit off for tax. Then add 5p to each product and you will soon recoup the costs

 

[LPB 123]

Yes set up individual bank accounts for those too.

You should still import the bank transactions, as thats the easiest way to keep everything reconciled. But they should be transfers from the respective accounts rather than sales income. You can setup simple rules that will automatically map the transfers from each account to your main account.

I was looking at Synder which works with QBO, it's expensive and starts at like £52 a month. Does what I would need, but at quite a cost for a small business :-(

Quickbooks connector is free

QuickBooks App Store

 

[TheoNe]

Paypal is a pain for this, you can import but it doesn't't show the transaction clearly. We always have to give our accountant another downloaded report

 

[swdirect]

Yes set up individual bank accounts for those too.

You should still import the bank transactions, as thats the easiest way to keep everything reconciled. But they should be transfers from the respective accounts rather than sales income. You can setup simple rules that will automatically map the transfers from each account to your main account.



Quickbooks connector is free

The QuickBooks connector seems to work pretty well for WooCommerce. I'm also testing OpenPayout because it supports all our platforms.

I've set up bank accounts for Stripe, PayPal, Clearpay, TikTok, and Klarna. Some of these make it difficult to see the opening balance, which I need to set correctly in QBO—TikTok and Stripe, for example. With Klarna, I can view the ending balance on any given day. Why do some payment processors make this so complicated?

Rather than creating receipts for every sale, I’m going to do it once a day for each processor and then transfer funds from those accounts to the main current account when payouts are made. This seems like the easiest approach when selling on multiple platforms and OpenPayout does a lot of this and calculates the fees.