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How do I account for income coming from Stripe
Posted: Thu Jan 11, 2024 11:34 am
by admin@fbcwellston
We haven't used a company to accept payments before. Stripe will collect money online and deposit it to our bank account as funds are received. Do you know how I will account for this? We are using it for Youth. We only have 1 bank account that everything uses.
I have a youth income 4880-000
Youth expense 5120-000
Youth equity account 3880-000
Would I enter each deposit in fund accounting? What would that look like?
Would I use accounts receivable?
Re: How do I account for income coming from Stripe
Posted: Sat Jan 13, 2024 12:59 am
by NeilZ
admin@fbcwellston wrote: ↑Thu Jan 11, 2024 11:34 am
We haven't used a company to accept payments before. Stripe will collect money online and deposit it to our bank account as funds are received. Do you know how I will account for this? We are using it for Youth. We only have 1 bank account that everything uses.
I have a youth income 4880-000
Youth expense 5120-000
Youth equity account 3880-000
Would I enter each deposit in fund accounting? What would that look like?
Would I use accounts receivable?
Are these funds Contributions, if so, they should be accounted for in Contributions. Are they for something else, if so, what?
Re: How do I account for income coming from Stripe
Posted: Tue Jan 16, 2024 9:30 am
by admin@fbcwellston
These funds are monies for a youth event, they are not contributions.
I have debited the 01 fund account and credited the Youth Event Income account. When I ran a balance sheet, it showed the correct amount in the youth income account, so I think I've done it correctly.
Re: How do I account for income coming from Stripe
Posted: Tue Jan 16, 2024 11:56 am
by NeilZ
admin@fbcwellston wrote: ↑Tue Jan 16, 2024 9:30 am
These funds are monies for a youth event, they are not contributions.
I have debited the 01 fund account and credited the Youth Event Income account. When I ran a balance sheet, it showed the correct amount in the youth income account, so I think I've done it correctly.
FWIW ...
It should have been entered like a normal Deposit, with a DEBIT of the checking account, and a CREDIT to the Income account. If the youth account was created as a Donor Restricted Fund, then the income account would be connected to the Fund Balance account and the system would take care of the update of the fund balance.