We often get asked about how to reconcile the payments that Silver Siphon creates. So here is a short guide on exactly how you should do that.
When Stripe clears a payment to your bank account, it will be made up of all the transactions that happened on one particular day. So that could be 1, 5, 10 or 1000 depending on your business.
For simplicity’s sake, let’s say there are 4 payments on the one day, all $100. There is a $1 fee taken out of all of them.
In the Stripe account you have set up in Xero, there will be nine transactions.
4 x $100 (the charges)
4 x $1 (the fees)
1 x -$396 (the lump sum deposit to your bank account)
To reconcile this, you code the charges to your sales account, whatever that is. It is different for every business, but usually starts with a 2. Like 201.
You then reconcile the fees to your bank fees account. We actually set up a “Stripe fees” account because we separate our fees to our bank, PayPal and Stripe.
The transfer is then reconciled by “matching” the transfer in your main bank account where Stripe deposits the money.
After all of this, the Stripe account balance would be zero.
You can get more advanced by setting up bank rules so that Xero recognises all of these transactions and shows the “OK” button in the middle of a green row. All you have to do is give it a quick glance and click OK on all transactions.
You can do this by creating rules on the data that Silver Siphon brings into Xero. Check out the “Field Mapping” section on the Services page to bring in data and even custom text that you can use in bank rules.
