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yvonnemin
June 22, 2022
Question

How do I handle payments via a Venmo Business account?

  • June 22, 2022
  • 1 reply
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I have a Venmo business account that people want to use. My accountant told me that I need to set Venmo up as a Bank in Quickbooks. But then how do I handle the payments. I want to invoice via Quickbooks. But then they pay me and there is a transaction fee. I realize that Venmo doesn't connect to QBO and that's fine - I can do this manually. I'm just not sure how to do it and capture both the payment and the transaction fees correctly.

 

Thanks!

1 reply

DivinaMercy_N
DivinaMercy_N
June 23, 2022

It's nice to see you here in the Community, @yvonnemin. Making sure you'll be able to record both payments and transaction fees from your Venmo Business account is a breeze. I'm just the right person to help. 

 

Before we begin, let me first discuss some information on how you can perform the process.

 

In QuickBooks Online (QBO), when handling Venmo transactions you'll have to deposit the payment to the Undeposited Funds account so you can include the transaction fees. Follow along below to get this done right away.

 

Let's now record the invoice payment. In this method, you'll have to deposit it to the Undeposited Funds account and use the Bank deposit feature to add the processing fees. Here's how:

 

  1. In your QBO account, go to the Sales menu and select Invoices.
  2. From there, look for the specific invoice and click the Receive payment option. 
  3. Make sure that you choose Undeposited Funds in the Deposit to field. 
  4. After that, click the Save and close button.
  5. Once done, select the + New option in the upper-left corner and choose Bank deposit.
  6. In the Account drop-down, select the bank account in which the funds are being deposited.
  7. Next, go to the Add funds to the deposit section and enter the transaction fees in a negative form (Ex. -$1.75) to reduce the deposit amount.
  8. When done, click Save and close.

 

Upon entering transaction fees, I recommend marking them as received from Venmo. This way, you can easily see the expenses you paid to them. To do so, add it as a vendor, here's how:

 

  1. In your QBO company, select the Expenses menu and click Vendors.
  2. Next, select New Vendor.
  3. Fill in the needed fields and click Save when done. 

 

After following the steps above, you'll now be able to record payments and transaction fees from Venmo easily.

 

I'd like to know any updates about the steps above. If you have additional queries about handling payments with fees, please post a comment below. I'm always around to lend you a hand. Have a good day and take care. 

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