VENMO 101 - How does it work with Quickbooks?

When you issue a refund receipt in QuickBooks Online (QBO) for a payment made via Venmo, here’s how the transaction works:

1. Determine How the Original Payment Was Received

• If the tenant paid you via Venmo directly, the refund must also be processed through Venmo (not QBO).
• If the tenant paid you via Venmo linked to your bank account, you will refund them from the same funding source (Venmo or your bank).
• If the payment was recorded manually in QuickBooks (not received through a QBO payment system), the refund will also need to be processed outside of QuickBooks.

2. Process the Refund in Venmo

Since QuickBooks Online does not directly send money to a customer when you create a refund receipt, you'll need to manually send the refund through Venmo:

• Open Venmo on your phone or computer.
• Locate the tenant in your transaction history or search for them.
• Send the refund amount manually.
• Note the transaction ID for your records.

3. Record the Refund in QuickBooks Online

Once you've refunded the money via Venmo, you need to record the refund in QBO to keep your books accurate:

• Go to "New" → "Refund Receipt"
• Select the tenant's name (or create a new customer profile if needed).
• Choose the Payment Method as Venmo.
• Select the bank account linked to Venmo as the account for the refund.
• Enter the amount refunded.
• Add a memo noting the Venmo transaction for tracking.
• Click Save and Close.

4. Match the Transaction in Bank Feeds (If Applicable)

• If Venmo withdraws funds from your bank account, the refund will appear in your bank feed in QuickBooks.
• Go to Banking → Transactions and find the matching refund.
• Select "Match" to reconcile it with the refund receipt.

Key Notes

• QBO does not process Venmo refunds automatically—you must handle that manually.
• Ensure that your Venmo account is connected to the same bank account you use in QuickBooks for smooth reconciliation.
• Keep a screenshot or record of the Venmo refund in case of disputes or bookkeeping.

Would you like help setting up a recurring method for tracking Venmo payments and refunds?