Explaining GoCardless payments in your accounting software

Where multiple payments are taken on the same date, GoCardless and Stripe will group these payments together, deduct its transaction fees, and make a single payment into your bank account. This article explains how to explain this transaction in your accounting software (e.g. Xero, Sage, Quickbooks, etc). 

Simple approach - assign to a single account code

If your income is all of the same type, for example membership subscriptions, the simplest approach is usually to create a contact in your accounting software called something like 'GoCardless membership fees' and associate all income transactions with this contact. Most accounting packages will allow you to set up an automatic rule that will automatically assign incoming transactions to this contact and the appropriate account code. 

Medium approach - assign to multiple account codes

If your income is a mix of membership subscriptions and donations, it is usually best to create a different contact for each account code and payment gateway, for example 'Stripe donations' and 'GoCardless membership fees'. You will then have to manually check each incoming payment from GoCardless and Stripe and divide it as appropriate between these different contacts, each with their appropriate account codes. 

Complex approach - replicate all contacts and invoices

In some cases you may wish to try to replicate all contacts and invoices in Xero. This requires a large amount of manual admin work so you should only do this if you are confident that it is necessary. If you take this approach then each payout received from GoCardless and Stripe will need to be allocated specifically to the contacts and invoices you have created in Xero, less the fees deducted by the payment gateway. 

Integrations

We are considering building integrations with Xero and Quickbooks so if this feature is of interest to you please get in touch to let us know.

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