You can reconcile Square transactions/statement in minutes with QuickBooks Online using PayTracker.
It is always better to follow the industry's best approach to avoid the reconciliation nightmare.
Step 1: QuickBooks Setup
1. Create a Bank Account named "Square Bank Account" (or name it as needed) in QuickBooks. This account will be used to record your Square sales & Square fees.
2. CHECKING ACCOUNT/CURRENT ACCOUNT should not be used directly to record your Square sales as it will create numerous issues in reconciling the Square fees.
3. Setup the bank feeds in QuickBooks or upload the Bank Statement in QuickBooks. The downloaded transactions will be available in the bank review section.
Step 2: PayTracker Setup
1. Connect PayTracker with your QuickBooks (How to?)
2. Connect Square with PayTracker (How to?)
3. Configure the sync settings for Sales, Expense, Fees, Items & Payout (How to?).
4. Record (Sync) the transactions from Square to QuickBooks (How to?).
While providing the settings, you need to select the same bank account ("Square Bank Account" or created Bank Account) for Sales, Expense, Fees, Items & Payout.
Step 3: QuickBooks Bank Review
Navigate to the Banking Section in QuickBooks, you could see that the TRANSFER transactions of "Square Bank Account" is matched against your deposits. These TRANSFER transactions won't be created if you have not enabled Payout processing in PayTracker.
Click the "Match" link to accept the transactions.
You can also create TRANSFER transactions directly in the Bank Review screen if it is not available.
Step 4: QuickBooks Reconciliation
- Navigate to bank reconciliation page in QuickBooks
- Provide statement balance amount and statement date.
- Start the Reconciliation Process.
QuickBooks automatically matches the transfers and deposits and marks the transactions as reconciled. Now QuickBooks Stripe sales (Invoices, Sales Receipts) and Square Expenses (Fees, Expenses) are properly matched with your checking account.