Following the reconciliation checklist and procedures, the Bookkeeper will follow the below steps to reconcile the NSC QBO Merchant Accounts:

Standard Procedures for Bank, Credit Card and Loan accounts

1. Prior to beginning any reconciliation procedures, make sure that all transactions in the respective account are cleared out of the ‘Banking’ tab in QBO. All transactions should be coded or matched to their correct account prior to being added into the ledger so that there is less review and reclassification on the financial statements post reconciliation.

2. Once all transactions are coded, and the bank feeds are clear, login to the respective account and download the monthly statement for the month that is currently being closed. 

3. Once you have the statement, in QBO navigate to the ‘Accounting’ tile on the left side of the screen and select ‘Reconcile’. Select the account that you’re working on and enter in the month end balance and the date of closing for that specific statement – some of the credit cards have mid-month closing dates. 

4. In the reconciliation screen, go through and click all transactions that match to the statement, once all transactions are selected the difference at the top right of the screen should be $0.00. If it isn’t then there are erroneous transactions in the reconciliation, and they need to be investigated further. 

5. Once balance reads $0.00 click ‘Reconcile Now’. There should be no transactions left in the reconciliation screen after the reconciliation is complete, if there are, they will affect the balance of the account on the balance sheet. 

6. Specific to Michael’s Chase Ink card ending in 0250, you’ll need to make an entry to summarize the monthly activity for the card members other than him on the same account. As of the last statement, there were 4 total cardholders on the account but only Michael’s charges pull through into QBO through the banking tab – that’s why the others must be summarized and entered to reconcile. You can see my entry as of 10/18 for reference in this account. 

PayPal Reconciliations   

1. Once in PayPal account, navigate to ‘Activity’ tab and then ‘All Reports’  from here, select ‘Statements’ and pull the relevant monthly statement for the account.

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2. Since the invoices automatically sync over to QuickBooks the relevant transactions should all be in QuickBooks already. The payments that have been received during the month are going to be in the Undeposited Funds account, and will need to be deposited into the PayPal bank account to reconcile properly. 

3. Select ‘+ New’ and click ‘Bank Deposit’ this will bring up all of the transactions in Undeposited Funds. The account you’ll want to select as the deposit account is the PayPal bank. Within this listing, you’ll be able to see payment type, amount and customer. These deposits can be made individually to maintain the transactional integrity seen on the statement or in a batch.

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4. Once all of the deposits have been made, you’ll go to the reconciliation screen of the PayPal account. If the bank account transactions have been coded correctly the deposits from PayPal to the bank account should already be populated, and the only items to address will be PayPal fees and any discrepancies in invoices. Once all deposits are matched to the statement, any discrepancies should be isolated as they won’t match the statement and will have to be addressed further.

5. An expense will need to be created to tie to the PayPal fees as listed on the statement. 

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6. Once all deposits are addressed and fees tied out, an adjustment will need to be made to reconcile to the statement. From the identified deposit discrepancies, a comparison between the PayPal invoice and the QBO invoice will show what account the adjustment will need to be posted to – sales tax, shipping, revenue, etc. Once the adjustment is posted, the statement should reconcile with QBO.

Stripe Reconciliations

1. Login to Stripe and navigate to the ‘Payments’ tab and under all payments, select the Export button and export the ‘Last Month’s’ data out. This will provide the customer name and other data that will make reconciling in QBO more efficient.

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2. After this, click the ‘Reports’ tab and click on the ‘Balance’ option. You will want to also download the ‘Balance Summary’ report for the previous month so that you have the beginning and ending balances to tie out to for the month. 

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3. Now in QuickBooks, all transactions will need to be deposited from ‘Undeposited Funds’ into the Stripe bank account as they normally have been for reconciling purposes. I found it easiest to create an additional column in my ‘Payments’ excel sheet and track any discrepancies in invoices/payments there so that I could calculate the amount of the adjustment that would need to be entered once all the transactions had been deposited. I’ve attached my workbook for reference.

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4. Once all transactions are deposited into the Stripe bank account, you can begin reconciling. The reconciliation screen is clear as of month end so as long as all of the deposits made from Undeposited Funds were tracked properly on the spreadsheet you should be able to just press ‘Select All’ and not have a need to go through one by one. If the bank accounts have been coded correctly, all the deposits from Stripe to the bank account should auto-populate, but this can be verified after selecting all and making sure the ‘payments’ amount at the top of the screen matches the balance summary spreadsheet. 

5. Now an expense will need to be entered for the total amount of the Stripe fees as reflected in the balance summary spreadsheet.

6. The final item should just be booking the adjustment to tie out the balance of the Stripe account. For the month, the account should be off less that $100. The journal entry should only affect 3 possible accounts – sales tax payable, revenue and the Stripe account. Any discrepancies in invoice amounts are likely sales tax related, and if for some reason a invoice isn’t captured in QBO but is in Stripe, the revenue needs to be recognized.

WePay Reconciliations

1. Login to WePay on the first day of the month subsequent to the month that you’re closing. On the home page of the WePay tab  you will find the net balance that is in the account at that time that needs to be reconciled to. 

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2. After this, click on the reporting tab on the left side of the screen. Filter the payments screen to the applicable period that you are reconciling and hit apply. At this time hit download csv and wait for the report to print out (will come via email).

3. Upon the report being printed out, filter the top columns and filter by withdrawal_id. At this point you should be able to start matching payments to the deposits that are sitting in the undeposited funds account in QBO. Once matched, each of them will need to be deposited to the WePay account on the respective date. They need to be deposited individually to maintain the transactional integrity. Once filtered by withdrawal_id, start matching the deposits by customer name, this is the most efficient way to get through all the transactions. 

4. After all payments and withdrawals have been reconciled an entry will need to be made for WePay fees. There is a column on the report that breaks out the WePay fee. The fees that are on the report typically do not automatically come through QBO and are not automatically reflected in the WePay balance.