Reconciling Stripe payouts and balances
Stripe groups many charges into one payout and deducts its fees before paying out. The bank only shows the payout, so the books need the detail behind it.
Where the detail is
Stripe offers a balance report and a payout reconciliation report. Together they show every charge, refund, fee, dispute and adjustment, and which payout each one belongs to. These reports are the source for your entries, not the bank feed.
Booking method
- Record charges as sales into a Stripe clearing account
- Record Stripe fees as an expense against the clearing account
- Record refunds and disputes, including the dispute fee
- Transfer each payout from the clearing account to the bank
At month end the Stripe clearing account should equal the Stripe balance that has not yet been paid out, pending and available together. Any other difference needs to be found.
Several currencies
If you charge in more than one currency, Stripe may convert before paying out. The conversion cost sits inside the payout amount. Book it as an FX loss or a fee so that sales stay at the amount the customer paid.
Subscriptions and SaaS
For subscription businesses, cash received through Stripe is not the same as revenue. An annual plan paid in January is earned over twelve months. Under US GAAP (ASC 606) the unearned part sits in deferred revenue and is released month by month. Keep the Stripe reconciliation and the deferred revenue schedule separate, and tie both to the same customer list.
Month-end checklist
- Clearing account agrees with the Stripe balance not yet paid out
- Every payout is matched to the bank
- Disputes and their fees are recorded
- For SaaS, the deferred revenue schedule agrees with the balance sheet
Questions about your own setup? Write to us at finance@teamsfinance.com or use the contact form.