how to categorize shopify fees in quickbooks

How to record Shopify Payments fees and other payment processor fees in QuickBooks Online Hi, Veroni

5 Minute Bookkeeping

Updated on Jan 20,2023

How to record Shopify Payments fees and other payment processor fees in QuickBooks Online

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How to record Shopify Payments fees and other payment processor fees in QuickBooks Online

Hi, Veronica Wasek and I help Shopify,sellers to set up, organize, and streamline their financial systems.,Whether you're looking for DIY, done with you,,or done for you financials.,In this video I'll show you my quick method,for recording Shopify payment fees and other payment processor fees.,In previous videos,,I showed you how to record Shopify sales in QuickBooks Online step by step and why,you should be using clearing accounts for your Shopify bookkeeping.,I linked that for you in the description.,But many of you have been asking me how to record the payment processor fees.,So I put this video together with a quick tutorial showing you how to record Shopify,payment fees and other payment processor fees.,Let's get started.,Let's go through a quick review of how payment processor clearing accounts work.,In a very simple example, if you have a sale from Shopify for $500,,you'll receive a deposit from Shopify that is net fees.,Let's say that you received $485,and that leaves you a balance of $15 in the clearing account.,We need to do something with that $15,in order to remove it from the Shopify Payments Clearing account.,So we'll need to record the Shopify Payments fee.,Once we record the fee,,then the balance in the Shopify Payments clearing accounts will zero out.,Let's go over how to record Shopify payment fees.,Log into your Shopify account.,From the search box, search for Payouts.,And then click on Payouts.,From the Payouts window, go to the right side and select Export.,Then select Payouts by date and enter,the date range that you'll be using.,Typically, we want to run the report,for the full month so that we just make one entry per month.,In this case, I'll run the report from June 1 to June 30.,You'll want to export the report as a CSV file and then click Export Payouts.,The report will be emailed to you, so go to your email and look for the report.,Once you open the report, it will open a spreadsheet.,Look for the Fees column and enter a formula to add up all of the fees.,In this example, the fees for the month were $56.59.,You'll need that amount in just a moment.,Go into QuickBooks Online.,Click on the Plus New button,,and then from the right side, select Journal Entry.,In the Journal Entry window, you'll need to change the journal date.,Enter the journal number.,And then under "Account", for the first,row enter "Shopify fees." This should be a cost of goods sold or an expense account.,Under the Debits column, enter the amount from your report.,Then in the second row, under "Account", enter "Shopify Payments Clearing" and put,the amount of the fees in the Credits column.,Then save and close.,Now let's go through an example of recording Affirm fees.,The process is the same for recording Shop Pay fees.,Log into your Affirm account, select Settlements.,Under Settlements, select Custom Range.,Enter the desired date, then click to download the report from the right.,Open the report, enter a formula to add up the fees.,Then go into QuickBooks Online.,Go to the Plus New button, select Journal Entry.,Change the journal date.,Change the journal number.,And then under "Account" for row one,,you'll enter Shop Pay or Affirm fees and put that amount in Debit column.,And then for row two, enter the Affirm or Shop Pay Clearing account.,Save and close.,For other payment processor fees, log into your account for each payment processor.,Find the report of fees.,Run the report of fees for the month, and record the fees in QuickBooks Online,to the corresponding fees expense and clearing account.,For example, if you're using Stripe, for the Fees account you'll use Stripe fees.,And for the Clearing account you'll use Stripe Payments Clearing.,For Klarna - Klarna Fees and Klarna Payments Clearing.,Or AfterPay fees and AfterPay Payments Clearing.,You may be asking yourself, is there any way that you can automate all of this?,Why do you have to enter all of it manually?,Well, unfortunately, at this point,,there isn't really any integration or any software that pulls all of the fees,from all of the different payment processors for you.,Because keep in mind, there are over 100 payment processors,and unfortunately, you have to enter the transactions manually.,I know it's not fun, but at least now you know how to record the fees.,So let me know in the comments.,Are you recording payment processor fees?,And are you having challenges,with reconciling your payment processor clearing accounts?,I'm Veronica Wasek.,Are you ready to work with a trusted and reliable Shopify accounting pro?,Check the description below to learn more,about my services and how we might work together.,If this content is helping you,,then subscribe to my channel, ring the bell and give me a thumbs up.,And check the description below for all,of my free resources, including my free,Shopify Bookkeeping Blueprint and the link to join my Facebook community.,I'll see you next time.

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