If you are using Stripe to process payments and integrating with QuickBooks you will need to set up a 'Clearing Account' inside QuickBooks to handle any returns, chargebacks, or misc fees that originate from Stripe.
How to set up a clearing account in QuickBooks
Step 1: Create a new bank / asset account in QuickBooks and name it 'Clearing Account'
Step 2: Name this account 'Clearing Account'
Step 3: In Gazelle map your 'Clearing Account' to this new QuickBooks bank account.
Step 4: Done!
This account will only be used if Gazelle needs to create a balancing transaction for a negative payout. Accountants and Bookkeepers use 'Clearing Accounts' all the time and if you have an accountant they probably already have a 'Clearing Account' set up that you can use.
FAQ About Using QuickBooks Clearing Accounts
What is a QuickBooks 'Clearing Account'?
A 'Clearing Account' is a bank / asset account in QuickBooks that exists solely to process negative deposits.
When does Stripe make a negative deposit into my account?
Not often. But occasionally if there is a refund, or chargeback, or misc fee that exceeds your daily Stripe payout, Stripe will debit your account instead of deposit funds into it. This doesn't happen often but when it does Stripe reports this to QuickBooks as a negative deposit.
Should my 'Clearing Account' ever have a balance?
No, your QuickBooks clearing account will always have a Zero balance. It only exists to off-set debits to your account when your Stripe payout needs to create a negative deposit transaction.
Why does QuickBooks require a 'Clearing Account' to process negative deposits? Can't they just debit my account?
No, QuickBooks does not allow you to create a negative deposit in your account. Debiting your bank ledger isn't the proper way to account for these types of transactions. Instead, accounting programs work some 'accounting magic' using a clearing account, an offsetting transaction, and a deposit slip with a negative balance to create a negative deposit that balances everything in the proper way.