How the Stripe Clearing Account in Xero Works

Stripe fees are deducted immediately upon processing of a transaction through Stripe. This can make it a little hard as the total for the invoice will not match exactly the amount that arrives in your bank account.

Pet Manager makes this process much easier if you utilise our Xero addon. 

The process is as follows:

• Payments are processed through Stripe - transaction fees are deducted immediately
• Pet Manager posts the original full payment amounts to your Xero Stripe Clearing Account
• Pet Manager automatically creates bills in Xero for all transaction fees and pays them from this account
• When Stripe transfers funds from their system directly into your bank account, it will be minus the fees. When Pet Manager is notified of a transfer from Stripe, it will automatically move the correct amount from your Xero Stripe Clearing Account to the Xero Bank Account you nominated in the Pet Manager settings. 
• You can now match transactions with Stripe deposits, simplifying reconciliation in Xero.
• All fees will appear in Pet Manager and a total payment amount for your reference.

Disclaimer

Pet Manager cannot provide accounting advice for your business. This article describes the features Pet Manager has put in place to assist you in identifying and reconciling payments in Xero.