- This guide will cover how to reconcile Squarespace transactions with the bank feed in Xero for those using the Squarespace + Xero integration.
- Allocate your payment deposits recorded in Squarespace to the clearing accounts.
Reconcile Squarespace clearing accounts by allocating payment deposits
For each payment type, you need to take note of what clearing account it has been mapped to. Then, you’ll need to go through the following steps for each payment type to complete the bank reconciliation process. To view the clearing accounts mapped to the payment types, follow this guide on accounts mapping.
For example, a Stripe payment has been recorded in Squarespace. The integration syncs the payment to the clearing account assigned to the Stripe payment type. When Stripe transfers the payout to your bank account, you must allocate this to the same clearing account, e.g. Squarespace Stripe Clearing. Follow these steps for the Stripe payment type:
Log in to Xero.
In the Accounting menu, select Bank Accounts.
Select the bank account where Stripe payouts are deposited, and click Reconcile.
Find the Stripe payout related to Squarespace. Next to it, under the Create tab, input a contact (e.g. Squarespace Stripe Payout) and select the Squarespace Stripe Clearing account or the mapped clearing account if you changed the default mapping.
Ensure the Tax Type is 0% (e.g. BAS Excluded / Tax Exempt) since the tax amounts have already been recorded into the synced invoice.
Please be aware that the Squarespace fees synced by the integration can consist of both transaction fees and processing fees incurred by third-party payment processors like PayPal and Stripe. Learn more.
What is a clearing account?
Clearing accounts are temporary accounts that hold a record of payment received as per POS/eCommerce app before the money is deposited by the payment service into your bank account. This means your sales and payments data are always up-to-date. Allocating the actual deposits to the clearing accounts will offset the amount on the clearing account that has the temporary balance and post it to a permanent account.