We were very excited to try out the new Stripe bank feed in Xero to see if it addressed one of the common gripes with receiving Stripe payments in Xero, namely that when your payments originate from outside of Xero you’re just receiving into your bank feed the NET payment amount, with the fees already deducted.
WHO NEEDS THE XERO STRIPE FEED?
If you’ve got the Stripe Integration already setup and on your sales invoices these match up fine but when we receive queries on how to reconcile Stripe payments in Xero it’s usually that they’re experiencing a problem where the payments come from e-commerce systems or otherwise outside of Xero.
In order to accurately represent your income and expenses you should be entering the Gross Sale amount and the Fee expense deducted and then matching this net amount to the payment received, which usually required checking into your Stripe console to get the figures and manually entering into Xero.
HOW DOES THE STRIPE FEED WORK
The new Stripe feed operates like a ‘bank account’ in Xero in the same way that you can set up a ‘Paypal’ bank feed.
Your Stripe account sits on your Dashboard and all the transactions can be reconciled just like any other bank account. Stripe essentially does function like a bank account, it receives the whole payment amount into your Stripe account, they then deduct fees and transfer the net amount to you. So now all of these transactions are shown with the new Stripe feed.
You can setup bank rules to easily automate and take care of the Stripe Fees and the transfer of the net payment to your main bank account and then depending on how you use the system you can allocate the whole gross payment amount to income (or create an invoice and receive it against that).