Often, a user is required to reconcile the deposits registered in their Square accounts with the particular ones in their QuickBooks accounts. The process of reconciliation comprises the distinction between the entries included in both these accounts.
It is done to determine whether the transactions are being added precisely or not. When everything is found to be right, the accounting software will show the difference in the transactions which may not differ for both accounts.
If you are not aware of how to reconcile the Square deposits in QuickBooks, you will not be able to leverage it and make the most of it. Reconciling the accounts can often allow you to locate the data entry errors if found.
Several measures are put in place to safeguard users from being blocked by any unrelated or duplicate entry. To avail of any such advantage, it is important that you comprehend how to reconcile both accounts with perfection.
What are the Advantages of Reconciling Squares in QuickBooks?
Reconciling the Square deposits in QuickBooks assists the users in calculating the transactions added to every account. This will actually notify you whether the transaction amount that has been included is right or not.
In the same manner, the reconciliation of Square transactions into the QuickBooks software can also be helpful for you in the following ways:
- The procedure allows you to know about the particular payments that are pending.
- Reconciling a specific transaction of the payment processing platform in your QuickBooks accounting software helps uphold accuracy in the financial records of an organization.
- When Square deposits are reconciled, the irregularity changes or any kind of data entry issue turn out to be nominal.
How to Reconcile Square in QuickBooks?
Using a new bank account can make reconciling Square transactions or deposits in QuickBooks simpler. It must be created and used subsequently when uploading bank deposits into the accounting software. An invoice can also be a big assistance when it comes to reconciling Square payments.
This allows you to confirm the transactions that are entered into your QuickBooks and Square accounts directly. The following methods given below can help you to reconcile Square deposits in QuickBooks:
Method 1: Preparing a Bank account
Your financial accuracy may suffer if you don’t know how to reconcile Square deposits in the QuickBooks software. As a result, you must open a new bank account before attempting to reconcile the accounts. The payments, reports, fees, and other comparable things will be kept there. The bank statement will also be uploaded to the accounting program using this account.
Note: It is suggested to take a backup of the QuickBooks company file to stop any loss of data or deposits when you are reconciling. Especially when you are attempting it for the first time, taking this backup is highly recommended.
- To keep track of Square’s sales, fees, reports, payments, and statements, a new bank account must be opened.
- This specific bank account can be called My Square Bank Account, making it easy for you to remember
- Remember the account that you have created
- Now, you must upload the bank statements in your particular QuickBooks program
- Once it is set up, the transactional data can be located in the section for Bank Review
- You must compare every transaction registered in the Square deposits to the particular ones available in QuickBooks
- After the Difference section states $0.00, it is assumed that the accounts are reconciled
Method 2: Via an Invoice
When a consumer purchases products or services but does not pay for them right once, an invoice is the record that is created. An invoice is created by the software as a request for the outstanding payment. This invoice can help when you’re reconciling the Square deposits in the application. This allows you to easily record and tally the deposits.
Here are the steps given below to reconcile Square in QuickBooks:
- First, you need to create an invoice for the client
- Now open the QuickBooks homepage
- Now click on the option for Receive Payments from the particular software menu
- If you are unable to find it, press on the Customer tab. Now you can witness the button for Receive Payments
- The amount available on the invoice needs to be included in the software. Make sure that the amount is equal to the Square fees
- Once the transaction matches, you must opt for the button, Transfer
- In a few moments, you will be able to witness the reconciled transactions
How to Reconcile Square in QuickBooks Online?
Users of the QuickBooks Online application can reconcile the deposits made on the Square platform. The Banking button will assist you in doing this. The software homepage has a menu that allows you to access this feature. It will assist you in aligning the program’s and the platform’s transactions. Once there is no longer any difference, you can close the case.
Here are the steps to reconcile Square transactions in QuickBooks Online:
- First, you need to integrate Square with the QuickBooks Online program prior to the reconciliation.
- Now launch the QuickBooks Online software. Then check if both the accounts or not have been integrated.
- When you are confirmed that your accounts are linked, go to the Banking option
- Go to the button named, For Review
- Search for the Match tab beside the Square transfers
- After it is done, the reconciliation will begin
- Ensure the difference between both the particular accounts is $0.00
- After this process is successful, your accounts will be reconciled
Understanding how to reconcile Square deposits in QuickBooks is helpful. This might aid you in carrying out a check on the transactions that are being recorded in the Square account and the accounting program. During the reconciliation, you can discover whether any transactions were entered incorrectly. Eventually, there won’t be any accounting inaccuracies in your records.
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FAQs – How to Reconcile Square Deposits in QuickBooks?
Why one Must Reconcile Square Deposits in QuickBooks?
To ensure that the financial statements are accurate, you should reconcile your Square deposits in the accounting software. This procedure will assist you in determining whether any errors in the entries have been made or if more than one transaction has been entered.
How often You must Reconcile Square Transactions in QuickBooks?
Each month, the Square transaction reconciliation in QuickBooks ought to be completed. Generally speaking, the reconciliation should be carried out at the conclusion of each month. As a result, new records are created at the beginning of each month. This will guarantee that your entries are consistently and accurately recorded.
What is Needed for Reconciling Square Deposits in QuickBooks?
Before their bank accounts are reconciled, Square and QuickBooks integration is crucial. Upon sync, the accounts will establish a connection with one another. Make sure this prerequisite is met before moving on to learning how to Reconcile Square in QuickBooks.