Xero Stripe Integration
If you want to see the video of Stripe Xero Integration scroll to the very end.
If you’re looking for a way to save time with your finances, look no further than the Stripe payment system. In this article, we’ll discuss how it can work in conjunction with Xero and why that might interest or benefit someone who uses both software programs regularly.
Stripe offers an innovative payment system that focuses on coding more than finance. It’s perfect for online sales and purchases, with applications to help you fight fraud, find your business information, or even make payments! Of course, you’ll likely work primarily in this area. Still, it is important not only to look at the incoming/outgoing sides of things – but these are also just as crucial when deciding how best to use Stripe within your company account budgeting structures Stripe has some great features like being able to combat chargebacks by providing extra security measures during checkout processes.
Significantly, they offer various coding options for developers who want to get started with this software. In addition, all the relevant codes and libraries are on their front page, making it easier than ever before.
HOW TO INTEGRATE STRIPE WITH XERO?
Xero has a few options to get you connected with Stripe. If your company uses XERO, it can be done by going into Account Settings and selecting ‘Payment Services’ from there. Alternatively, one could also start in Invoice Approval Mode, where they will have been previously approved invoices before connecting their account through these same steps for initiating payments.
Signing up for Stripe is easy. You can sign-up in Xero, choose ‘Get Started’ on their credit card option and it will guide you through the process of setting up a new account or connecting your pre-existing one to make transactions more seamlessly between both systems easier than ever before.
Let Xero set up your account with Stripe, and you won’t have to worry about it again.
When asked where fees should appear in Xero, choose an existing one of those offered by the company or create a new one, if necessary, through their website! After that, we need to activate our subscription first via email before completing setup on both ends (Stripe-Xero).
Don’t forget to add your Stripe connection as a payment option for customers to pay online invoices quickly.
Receive invoices quickly and easily with no hassle. Your customer can click ‘pay now’ on the invoice they receive, which will automatically mark it as paid in Stripes software. This means reconciliation is easy because you only need to match incoming money against what was sent out – there won’t be any matching issues thanks to the integration between Stripe’s payments platform and Xero accounting software so that fee transaction appears immediately after payment has been made through your chosen bank account provider (Stripe charges 2.9%).
It is also possible to integrate stripe with other e-commerce platforms. See small business accountants
STRIPE & XERO DOUBLE ENTRIES?
Let’s say you’re putting money into a different account. This way, when the time comes to withdraw from that source of income or use it as collateral for loans- it can be accessed easily without having any awkward financial discussions with anyone else involved in those transactions because they’ll already know how much is being taken out and put back by us (the business).
For example: When we make our payment with a credit card at checkout counters; this credits one bank account while debiting another – which has nothing outside its theoretical function except allowing us to record what was spent during an accounting period; the same goes if someone pays cash directly over their counter but owes some amount later–that person’s trade receivables will debit.
Stripe Xero integration
The Stripe Xero integration process is explained in the following steps:
Now that you’ve raised a sales invoice, it’s time to enable the option for payment via Stripe. Once done under the “Online Payments” section on this invoices page, all its information will be visible to make things easier when paying!
Double Entry 1:
- Cr Sales £87.50
- Cr Vat £17.50
- Dr Accounts Receivable £105
The customer pays the invoice. For some reason, you will receive less money than what was invoiced and submitted to Stripe minus their processing fee of $0.50 per transaction: As we can see in our example below… £105 total received, but only £100 made it into an account.
Click on ‘Match’ and select the invoice you wish to reconcile by checking off all payments. You will notice that this invoiced had an extra charge of £5, which is called a stripped fee for processing electronic payments on behalf of its issuer’s financial institutions.
Double Entry 2a:
- Cr Accounts Receivable £100
Dr Bank £100
Choose ‘adjustments’, and then select bank fee.
Complete the fields for bank fee adjustment as shown below. Enter the amount of the adjustment in this instance PS5 and then click Reconcile.
Double Entry 2b:
- Cr Accounts Receivable £5
- Dr Stripe Fees £5
We are Chartered Certified Accountants, helping our clients grow and prosper for over a decade. From integration, automaton, or streamlining business processes, we’re here to do what it takes.
Related Article: Xero Vs Sage