How do I record statements from Stripe (not invoiced from wave).

WavergmailWavergmail Member Posts: 7

some customers buy services direct using stripe - and are sent a statement straight away,

How do I record this correctly in wave? 1) Do I upload it as an invoice 2) say it is paid 3) merge with the transaction from the bank account.

or can I tie it direct to the bank account import?

thanks in advance

Comments

  • AlexiaAlexia Administrator Posts: 3,116 admin

    Hi, @Wavergmail.

    The easiest way to do it is probably to download your statement from Stripe and turn it into a bank statement that matches the format we use for bank statement uploads. That way you'll have both the full payment for your product and the merchant fee as separate transactions. If you receive payments through Wave, we take care of all of that for you.

    If you want to enter those as invoices, it's a bit more work...

    1. You'll need to create a bank account called Undeposited Funds.
    2. You'll record payments for your invoices to this account.
    3. Then, you create an expense for Stripe's fee to that same account.
    4. Finally, when the transaction uploads from your bank connection, categorize it as a "Transfer from Undeposited Funds".

    Following these steps, you'll be able to cover all your bases (have an invoice recorded as paid the full amount, keep track of merchant fees, reconcile with your bank statement). Let me know if that helps!

  • WavergmailWavergmail Member Posts: 7

    Thanks for the response, much appreciated. I would love to do this via Wave, but I am using stripe with Acuity Scheduling in the main. If you could integrate with Acuity Scheduling.....that would be amazing!!

    Downloading from Stripe sounds the easiest. How do I reconcile the upload from stripe with the import from the bank to take into account the charges? Is it just a merge?

    sorry to ask

  • AlexiaAlexia Administrator Posts: 3,116 admin

    Don't be, @Wavergmail! I'm here to help out.

    You're on the right track, but you might be able to. If Stripe's transactions are logged before the merchant fee is taken, they won't match what uploads from your bank. If they don't match, you won't be able to merge them.

    The solution isn't too complicated, however. You just have to delete the matching transaction from your bank. You won't be able to reconcile with your bank statement in this case, but it'll be a bit less work on your part. I do recommend using the longer method (with the Undeposited Funds account) since it's more accurate, but ultimately, it's up to you and your preferences.

  • WavergmailWavergmail Member Posts: 7

    @Alexia hello, so having seen this in practice - getting paid direct to strip will cause problems.

    There are already inconsistencies.

    The question I have is: If I invoice and do everything through wave - including refunds etc. Will the numbers from the Stripe reconciliation account match that of wave so I just delete the stripe import/ reconciliation?Or are there still accounting issues?

    Trying to get paid the different ways is creating inconsistencies. For example, annoyingly I have a refund issue with costs still paid to Stripe which don't match the 'amount' import into Wave compared to the invoices in wave because Wave doesn't 'know' about the other purchases - basically the Stripe import is a group import of all monies.

    How do you account for the difference in wave? Do I need to create a new Journal Transaction ?

    many thanks in advance

  • AlexiaAlexia Administrator Posts: 3,116 admin

    Hi, @Wavergmail,

    If you connect your Stripe account to Wave and accept payments directly through our invoices, all of your numbers related to invoices handled through Wave should be accounted for automatically. That includes handling merchant fees on income from your invoices and from refunds.

    Note that this won't affect past payments or refunds, it'll only apply invoices handled through Wave's integration with Stripe.

    As for fixing your current situation, you'll just have to go through your numbers, find the errors and fix them. If you simply use a journal transaction, it might make it difficult to reconcile your accounts later down the road.

    Stripe's merchant fee on their CSV reports has its own column that needs to be turned into their own transaction to be accounted for. If that wasn't done in addition to copy-pasting removing the extraneous columns from their document, that might account for the discrepancies. If that's what happened and you'd like me to give you a step-by-step breakdown for turning Stripe's CSV into one compatible with Wave, let me know. I'd be happy to.

    A payment through Stripe should look like this:

    • A deposit for the full amount of the payment to your Stripe account
    • A withdrawal for Stripe's fee to the Stripe account
    • A transfer from Stripe to your Bank Account.

    If you make sure to follow that structure, your balances should all be in order at the end of the process.

  • WavergmailWavergmail Member Posts: 7

    Thank you @Alexia. What I dint mention is that the inconsistencies are caused by also invoicing from Wave - so both sides don't match. As the amount coming in from Stripe - with transaction costs say, on a refund, don't match because those transactions happen in stripe.

    But if I have read it correctly and understood it. These problems disappear if I invoice etc only from Wave.

    I am charging people directly on my website (for professional services), via Acuity Scheduling, so no invoicing in that sense is done. Will Waves checkout (when launched) allow me to do this and manage all the stripe payment fees etc so I dont have this problem?

    many thanks in advance again

  • AlexiaAlexia Administrator Posts: 3,116 admin

    Hi, @Wavergmail,

    Happy to hear things are making a bit more sense. Handling those payments with the "Undeposited funds" method from my first reply would get around those issues as well. To handle refunds, you would split the expense transaction uploaded from your bank with one part for the full amount of the invoice, and one for the merchant's fee. You would categorize the first as a refund for that invoice and the second to Stripe fees.

    Technically, Checkout would solve that issue, but it'll only be available for businesses in Canada and the United States for the foreseeable future.

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