What does this article help you do

This article describes how to reconcile Squarespace payments in QuickBooks Online using PayTraQer.

Follow this guide to:

1. Connect Squarespace to QuickBooks Online using PayTraQer

2. Establish a Squarespace clearing account in QuickBooks

3. Sync Squarespace payments, refunds, fees, and settlements

4. Match Squarespace deposits in the QuickBooks bank feed

5. Reconcile the Squarespace clearing account at the month-end

6. Address common differences in deposits and clearing accounts

What Makes Squarespace Different?

Squarespace serves as a website builder and an e-commerce platform. This means that for QuickBooks Online to reconcile correctly, it may need more than just the bank deposit. Sales, fees, refunds, taxes, shipping, discounts, and payouts should all be checked individually.

In QuickBooks Online, the bank feed generally shows only the net deposit amount. This amount may have already had payment processing fees, refunds, chargebacks, or other adjustments taken out. As a result, recording the bank deposit as income directly can result in less accurate financial records.

For Squarespace reconciliation, you need more than a straightforward bank deposit match. It's essential to track the original sale, tax, shipping, discount, refund, fee, and final payout separately. PayTraQer facilitates this process in QuickBooks Online, making it easier to review and reconcile sales and payout records.

Prerequisites

Before you sync Squarespace payments, make sure to finish these setup steps.

Create a Squarespace clearing account 

• In QuickBooks Online:

1. Go to Accounting

2. Open Chart of Accounts

3. Click New

4. Choose Bank as the account type

5. Name the account Squarespace Bank Account

6. Save the account

• Use a Bank-type account since it can be reconciled in QuickBooks.

• Avoid sending Squarespace payments to your checking account directly during sync.

• For Squarespace reconciliation, it is advised to create a separate Squarespace bank account in QuickBooks instead of using your checking account for Squarespace transactions.

Create the required income and expense accounts

• Create or confirm the following accounts in QuickBooks Online:

How the Squarespace clearing account flow works

• The clearing account in QuickBooks is a temporary account that stores Squarespace transactions until the funds arrive in your actual bank account.

• Here’s how it works:

Step 1: Squarespace payments are integrated into QuickBooks.

Step 2: Payments are added to the Squarespace Bank Account.

Step 3: Fees are recorded as expenses when fee syncing is active.

Step 4: Refunds or returns lower the clearing account.

Step 5: PayTraQer makes a bank transfer from the clearing account to the checking account.

Step 6:The actual bank feed deposit is aligned with that transfer

• This separates gross sales, refunds, deductions, and deposits, making them easier to verify.

How to Reconcile Squarespace in QuickBooks Online Using PayTraQer

Step 1: Install and Connect PayTraQer

• Log in to QuickBooks Online and go to the Apps section.

• Search for PayTraQer, click on Get App Now, and authorize the link to your QuickBooks company.

• After you install PayTraQer, open it and select your preferred sync mode.

• Choose either Summary Sync or Itemized Sync depending on your accounting workflow.

• Go to the Connectors tab and pick Squarespace to start the connection.

• Make sure to use the correct Squarespace Merchant ID and account information. Do not link Squarespace to a standard PayPal account, as PayPal and Squarespace should be added as different connectors.

Step 2: Decide how Squarespace payments should be synced

• Check if Squarespace is your only sales source or just a payment gateway before syncing.

• This is significant since the sale could already be captured by another platform, such as BigCommerce, WooCommerce, Shopify, a billing tool, or a custom checkout.

Step 3: Configure Squarespace Sync Settings

• Check the Sales Settings and select Squarespace Bank Account as the clearing account.

• Set the Payment Method to Squarespace and pick the current or default customer.

• In Products and Services, link Squarespace Sales to the appropriate income account.

• In Tax Settings, prevent duplicate tax and apply the correct QuickBooks tax code.

• In Fees Settings, connect fees to Squarespace and Squarespace Processing Fees.

• Enable Payouts, transfer to checking, and consult How to Sync Squarespace with QuickBooks Online using PayTraQer.

• For complete setup instructions, check this article: How To Sync Squarespace with QuickBooks Online using PayTraqer

Step 4: Sync Transactions and Verify

• Start by syncing a short date range from Authorize. Net.

• In PayTraQer, choose the transactions and download the historical data.

• Examine the transactions closely before syncing them to QuickBooks Online.

• Check that sales, fees, refunds, and payouts are in the right accounts.

• Make sure to keep PayPal and Squarespace transactions distinct.

• If everything seems accurate, sync a larger date range and switch on Auto Sync for future Squarespace transactions.

• For complete sync instructions, check this article: How To Sync Squarespace with QuickBooks Online using PayTraqer

Step 5: Match Bank Deposits in QuickBooks Online Banking Feed

• Once PayTraQer logs the Squarespace payout transfer, access QuickBooks Online and navigate to Transactions or Banking.

• Go to the Checking account feed and remain in the For Review tab to find the Squarespace deposit.

• Locate the corresponding deposit and select Match, not Add, so QuickBooks connects it to the transfer already recorded by PayTraQer.

• This step is crucial because clicking Add may result in a duplicate deposit and inflate your income in QuickBooks Online.

• If the deposit does not match automatically, check the payout amount, payout date, transfer account used in PayTraQer, and if the payout has already been synced.

• Also, verify if refunds, fees, or chargebacks have altered the final net payout amount that was deposited into your bank account.

Step 6: Review the Squarespace clearing account

• The Squarespace Bank Account in QuickBooks Online should show the money that is still in Squarespace before it gets transferred to your actual bank account.

• To reconcile it, go to Accounting, select Reconcile, pick Squarespace Bank Account, input the statement ending date and ending balance from your Squarespace settlement report, and then begin the reconciliation process.

• During reconciliation, mark the transactions that correspond with your Squarespace report, such as sales, refunds, fees, chargebacks, and payout transfers.

• If all funds for the period have been paid out, the clearing account might be nearly zero, although some balance could remain for pending items.

• If the difference does not resolve, carefully compare QuickBooks with the Squarespace settlement report.

• Check if a payout was overlooked, a refund was synced twice, a fee was charged to the wrong account, PayPal and Squarespace were confused, or if the wrong ending balance was entered.

Step 7: Reconcile the checking account in QuickBooks Online

• After you reconcile the Squarespace clearing account, go to your main checking account and complete the regular bank reconciliation in QuickBooks Online.

• Select the Gear icon, click on Reconcile, choose the checking account, verify the starting balance, enter the ending balance and date from your bank statement, and then click Start reconciling.

• Compare the transactions in QuickBooks with those on your bank statement, and only mark the matching transactions as cleared during the reconciliation.

• Each payout should ideally correspond directly to the bank deposit and the transfer noted in QuickBooks Online.

• If a payout does not align, check the related transfer and ensure that the amount in QuickBooks matches the actual bank deposit.

• Avoid recording Squarespace sales directly into the checking account, as this account should only receive payout transfers from the clearing account.

Common Scenarios and How to Fix Them

PayTraQer vs Other Tools for Squarespace

FAQ

1) Can QuickBooks Online reconcile Squarespace payments by itself?

QuickBooks Online can match bank deposits, but PayTraQer makes reconciliation easier by syncing Squarespace sales, fees, refunds, taxes, shipping, and payouts directly into QuickBooks Online.

2) What happens if I record only the bank deposit as income?

When you record just the payout deposit as income, it can lead to understated sales, missing fees, and incorrect tracking of sales tax or refunds.

3)  Should I use manual sync or auto sync for Squarespace?

During the initial setup, use manual sync to review transactions first.

After you confirm the mapping is correct, you can use auto sync for ongoing transactions.

4)  Can I sync historical Squarespace transactions?

Yes, but start with a limited date range first. This allows you to verify mapping accuracy and prevent duplicates before syncing older transactions.

5)  Why are Squarespace transactions duplicated in QuickBooks?

Duplicates generally happen when the same sales are manually entered or when a bank feed deposit is added as income rather than matched.

6) How do I fix duplicate Squarespace deposits in QuickBooks?

Undo or remove the duplicate bank feed deposit, then match the actual bank deposit with the payout transfer generated by the Squarespace sync process.

7) Does the Squarespace clearing account need to be zero every day?

No. The clearing account can have a balance from the order date to the payout date. It typically clears when the corresponding payout is received and matched.

8) What should I check before closing the month?

Check the synced Squarespace sales, fees, refunds, taxes, chargebacks, payout transfers, bank feed matches, and the balance of the Squarespace clearing account.