We're a headhunter agency that connects US businesses with elite LATAM professionals who integrate seamlessly as remote team members — aligned to US time zones, cutting overhead by 70%.
We’ll match you with Latin American superstars who work your hours. Quality talent, no time zone troubles. Starting at $9/hour.
Start Hiring For FreeStruggling to reconcile Stripe payments in Xero? Here's the solution. By integrating Stripe with Xero, you can automate payment reconciliation, saving hours of manual work. This process links Stripe transactions to Xero invoices, accounts for fees, and supports multi-currency transactions. Here's what you'll achieve:
To get started, set up the Xero Stripe bank feed, configure payment settings, and use tools like "Find & Match" for unmatched transactions. Whether you're dealing with surcharges, recurring payments, or manual adjustments, this guide simplifies the process and ensures accurate financial records.
Once you've set up the automated feed, you can handle Stripe payment reconciliation directly in Xero. Here's how:
In Xero: Go to Accounting > Bank Accounts > Select Stripe account, then follow these steps:
"When the payment is made, Xero will automatically create a spend money transaction for the Stripe fee and mark the invoice as paid" - Stripe Support Documentation
ch_XXXX
) for accuracy.For businesses handling aggregated payouts, like the UK e-commerce company mentioned earlier, match the total payout to grouped transactions using memo fields for clarity.
If transactions are missing, verify the payout settlement period (typically 2-7 days) and ensure the date ranges align.
While most Stripe transactions are handled through automated reconciliation, there are times when you may need to record them manually. Here's how you can do it:
Taking these steps helps maintain accuracy, even for transactions with added complexities like surcharges.
Stripe and Xero simplify payment reconciliation by using charge ID matching. Payments are processed through three key steps:
Note: Automatic reconciliation works only with scheduled payouts. If you manage withdrawals manually, you'll need to reconcile payments manually using Xero's "Find & Match" feature, matching them with the Stripe charge IDs.
Reconciliating EFTs in Xero builds on the platform's automated Stripe integration, specifically handling payment batches. While Xero extends Stripe's automation to bank transfers, you might still need to step in manually at times.
If the auto-match doesn’t work:
For Stripe EFT fees, use your Merchant Fees account (set up earlier) to track net deposits and related costs. This keeps your records accurate when processing payments in bulk.
Troubleshooting common reconciliation issues:
For foreign EFTs, rely on Xero's multi-currency support and daily exchange rates. Apply the same multi-currency techniques discussed earlier for accurate reconciliation.
This process streamlines reconciliation workflows, as shown in earlier examples. To get started, you'll need to meet specific requirements, including having a Xero organization based in the same country. Proper setup ensures you can take advantage of automated reconciliation features.
You can link your accounts through Xero's Payment Services screen:
Alternatively, you can connect directly from an approved invoice by selecting the "Online Payments" option and choosing Stripe as the credit card provider.
Make sure to adjust these key settings:
Setting Category | Key Settings | Purpose |
---|---|---|
Bank Account | Link Stripe-connected account | Route transactions properly |
Fee Structure | Set 2% default merchant fees | Track fees automatically |
Payment Sync | Enable/disable as needed | Avoid duplicate entries |
Tax Handling | Configure for transaction fees | Ensure compliance |
"The integration handles double-entry accounting automatically - debiting bank accounts and crediting sales accounts with precise fee allocations." - Fusion Accountants Guide
To maintain consistency, map your accounts as follows:
Primary Account Categories:
For businesses with more complex needs, additional automation tools can provide further customization.
Security Tips:
Ongoing verification supports error prevention and ensures smooth reconciliation processes.
To import Stripe transactions into Xero, your Stripe account must be set to use automatic payout schedules. This setup ensures payments are matched to Xero invoices using Stripe's charge IDs (e.g., ch_XXXX).
Once your accounts are mapped correctly during the setup process (as explained earlier), the transaction import process runs smoothly.
If surcharging is enabled, Xero simplifies reconciliation by breaking down each transaction into separate entries. For example, if you have a $500 invoice with a 3% surcharge, Xero will generate:
For invoices created outside of Xero, use the "Find & Match" feature to reconcile payments. Match the net amount after Stripe's standard fees, and record the processing fees as separate expense entries for accurate bookkeeping.
If you're handling recurring payments or subscriptions, apply the same reconciliation steps with a few extra considerations:
Xero makes tracking Stripe fees simple through its automated system, set up during the integration process. Once configured in the Payment Services Settings, Xero automatically records these fees as separate transactions in your bank feed. Each fee is listed with clear descriptions, including the relevant Stripe charge IDs (e.g., ch_XXXX), making them easy to identify.
If your business absorbs Stripe processing fees instead of passing them on to customers, you’ll need to match net payments to invoices while recording the fees separately.
Here’s how Xero handles different transaction scenarios:
Transaction Type | Net Amount Recording | Fee Allocation | Reconciliation Method |
---|---|---|---|
Single Payment | Match to invoice | Direct to Merchant Fees | Auto-reconciliation (requires automatic payout schedules in Stripe) |
Batch Payments | Split by invoice | Proportional allocation | Manual matching |
Xero’s automated fee tracking also helps you spot trends and patterns in your processing costs. Regularly reviewing this data can provide valuable insights.
Focus on these key metrics for better oversight:
These metrics can help you manage and potentially reduce processing costs over time.
Xero Central builds on the platform's bank feed features by offering tools for centralized management. However, when a single Stripe account is used across multiple Xero entities, automatic reconciliation isn't possible. Instead, you'll need to use the Find & Match feature to manually reconcile transactions for each organization.
To ensure transactions are matched correctly across entities, pay close attention to the details in each organization's bank feed. This becomes especially important when handling departmental accounts under one Stripe payment processor.
Xero simplifies tax filing for Stripe transactions through its tax code mapping system. Payments with mixed tax rates are processed effectively using these features:
Tax Automation Tool | Purpose |
---|---|
Preconfigured Rates | Automatically applies the correct tax rates |
Line-Item Tracking | Links taxes directly to specific invoices |
Bulk Tax Adjustments | Eases tax handling for multi-currency payments |
These tools go beyond just tracking fees, ensuring taxes are applied correctly and efficiently.
Stripe payout reconciliation in Xero requires careful timing and accuracy. The system flags discrepancies caused by currency differences or delayed transfers, helping to maintain accurate financial records.
For subscription-based businesses with high transaction volumes, Xero's Advanced Analytics module offers robust monitoring and reporting tools:
Feature | Functionality |
---|---|
Fee Analysis | Predicts fees and provides regional benchmarks |
Monitoring | Sends real-time alerts for unusual activity |
These analytics tools also address fee trend analysis, as discussed earlier. Xero further supports accurate tracking by creating holding accounts and generating adjustment entries for failed payments, ensuring nothing slips through the cracks.
To simplify Stripe reconciliation in Xero, focus on setting up Stripe payout settings and mapping Xero accounts correctly. It's a good idea to maintain separate general ledger (GL) accounts for Stripe fees and chargebacks to keep your records clear.
When dealing with international payments, use Xero's currency conversion tools to avoid errors caused by exchange rate differences. This is especially important for businesses handling transactions across multiple currencies.
Reconciliation Element | Suggested Approach |
---|---|
Account Setup | Use separate GL accounts for fees and revenue |
Currency Handling | Enable and configure multi-currency settings |
Matching Transactions | Use the "Find & Match" tool for manual reviews |
The Stripe-Xero integration streamlines your workflow by automating tasks like charge ID matching, which drastically reduces manual effort. As mentioned earlier, this feature achieves a 92% auto-match rate, saving time and improving accuracy. Additionally, the system automatically creates "spend money" transactions for Stripe fees, giving you a clear picture of net revenue after deductions. By applying the strategies outlined in this guide - like leveraging auto-matching tools and setting up well-organized accounts - you can cut down on manual work while keeping your financial records accurate and up-to-date.
See how we can help you find a perfect match in only 20 days. Interviewing candidates is free!
Book a CallYou can secure high-quality South American for around $9,000 USD per year. Interviewing candidates is completely free ofcharge.
You can secure high-quality South American talent in just 20 days and for around $9,000 USD per year.
Start Hiring For Free