Taxomate supports payment gates and payment processors. PayPal is enabled by default but please contact us to enable others. Payment gateways will have their own payouts in Taxomate like the payout imported for Shopify Payments.
Taxomate will not be able to split out the fees charged by your payment gateway since the fees are deducted before the money is deposited in your bank account. Since we cannot see this fee, we use a clearing account.
Payment gateway payouts will include sales, fees, and taxes like other payouts. However, we will also include an offset line item for the payments gateway, which will get posted to the clearing account. The bank deposits you receive from the payment gateway should allocated to that clearing account.
The clearing account will increase with each allocation of the bank deposit and decrease with the Shopify payouts.
👉 Note: Since the payment gateway deducts these fees from the deposits and Taxomate has no way of knowing the amount, you will likely have a small balance in the clearing accounting. To account for these fees you will need to create a manually entry or invoice.
👉 Note: We recommend creating a different clearing account for each payment gateway. This will make reconciling against each payment provider's monthly statement easier.
Reconciling Gateway Payment Clearing Accounts
STEP 1. Send the payment gateway payout from Taxomate to your accounting system.
STEP 2. Categorize the gateway deposits in QuickBooks or Xero to the applicable clearing account.
STEP 3. Manual record any processing or other fees by the payment gateway that not be accounted for.