Stripe and GoCardless are both excellent services, but the mechanics of reconciliation in Xero (of your accountancy software) can still be quite tricky and time-consuming.
This is because Quoox, to comply with tax rules, creates invoices and credit notes in Xero at the amount transacted. This is the taxable amount, so are the figures that have to be used to ensure you pay the correct amount of tax on your sales. However, both Stripe and GoCardless take their fee and then pay monies to your bank account in batches. This means that matching transactions can be quite tricky.
By default, your Stripe and GoCardless transactions in Xero look something like this:
If you are processing multiple invoices per day, this sum is made up of all of those invoices, subtract Stripe/GoCardless fees.
Step 1
Click the Find & Match button, or the link at the top right of a bank statement line (money received)
Step 2
Xero will display a list of transactions that can be matched, including invoices. Tick all the invoices that fall under the corresponding bank transfer. As you do this, they will appear in the bottom box.
Step 3
When you have selected them all, the total will be out by the Stripe/GoCardless fee amount for the day. At this point, you should double check the fees in your Stripe/GoCardless 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.
Using SilverSiphon
SilverSiphon is a 3rd party tool built into Xero to help you reconcile your Stripe payments.
Quoox has no affiliation with SilverSiphon, and you should independently validate if SilverSiphon can help your needs.
For more information, check out the SilverSiphon website.
The word from GoCardless
GoCardless publish an article regarding reconciliation of their payments into Xero, which can be found here.
