Many of our kitchens use Quickbooks software to manage their budgeting and accounting. Because each kitchen sets up their chart of accounts differently, we want to provide some general best practices to help make reconciliation of your Food Corridor revenue data with your Quickbooks easy.
Every kitchen is a little different with how they set-up their Quickbooks. Most kitchens on The Food Corridor reconcile their books after the 1st of the following month. This way all report data is complete at the time of reconciliation. (Note that ACH payments take 5-7 days to be transferred into your kitchen's bank account, and credit card payments take 2 days).
Since The Food Corridor generates client bills for bookings, plans, storage, fees, and credits, there is no need to recreate invoices in Quickbooks. Our Payments reports provided in the Reporting tab can be downloaded as .CSVs, sorted, and imported or entered into Quickbooks once a month.
Most kitchens simply enter the total revenue per category numbers into Quickbooks each month. These categories typically include storage revenue, kitchen time revenue, and kitchen fee revenue, minus the The Food Corridor platform fees. Kitchens rarely enter revenue data at a client level, since it is already stored for you in The Food Corridor. This helps keep your process simple and organized by revenue types.
Helpful Reports on The Food Corridor
The Report tab provides you with information to make reconciliation easy.
The TFC report most commonly used for Quickbooks reconciling is Total Revenue by Type.
Monthly Revenue by Type report. This report includes monthly totals for each category that have been successfully billed (i.e. it does not include any declined billings or unpaid amounts). The Total Revenue report groups charges by when they were actually billed. So for example, the July revenue would include one-time fees, monthly bills, and hourly bookings that were billed in July, as well as any previously past-due payments that successfully went through in July. Most kitchens only use this report. This report is helpful for entering total revenues by category into Quickbooks, that were collected that month.
If you need to dive in deeper, some kitchens also find the following reports helpful:
Billed Line Items report. This report includes month and year, bill #, client name, line item charge type, charge description, billed-at date, bill status, and Stripe payment id. The Billed Line Items report groups charges by the month they are associated with under the first column. So for example, a one-time fee that was originally set to charge in May and became past due, and was then finally successfully billed in July, would still be associated with May. To see which line items were successfully billed in July, you will want to sort by the "Billed At" column. This report is helpful if you need to verify specific line item amounts/charge types and billing dates per client.
Payment Details report: This report helps you track and reconcile client payments. Many client payments include multiple charges on a bill (e.g. storage, monthly fee, billing plan, etc). Where the Billed Line Items report breaks down each of these separate charges by charge type, the Payment Details report shows you the details for a client's total bill and payment. The report shows, for each payment: the bill number, bill creation date, amount owed vs. amount paid, payment status, platform fee, tax, net revenue, payment date, Stripe payment id, payment type, and any payment notes on manual payments. This report is helpful if you need to compare clients' payments in Stripe with your bank statements.
Monthly Revenue report. This report includes totals for gross revenue, tax (if applicable), TFC platform fee, and net revenue for the month, for payments that have been successfully billed. Similar to the Monthly Revenue by Type report, this report groups charges by when they were actually billed. So for example, the July revenue would include one-time fees, monthly bills, and hourly bookings that were billed in July, as well as any previously past-due payments that successfully went through in July. This report is helpful for entering other totals into Quickbooks.
Custom report fields. These can help you organize and tag your clients for any additional client tracking you may need (such as a Quickbooks ID).
Helpful Actions in Stripe
Stripe, our payment processor, also generates transaction reports that kitchens may wish to view or export (Log in to Stripe and retrieve from Balance > Transactions and also Payments > Export). These include the transfer date, client name, bill number, and TFC platform fee (which Stripe calls the application fee). This allows you to see when the amount due on a bill was actually delivered via Stripe.
Stripe's default is to pull money from Stripe into your kitchen's bank account every 2 days. However, you can configure your Stripe account differently if you wish, to only transfer the money to your kitchen's bank account weekly or monthly, for example. You can see your transfer schedule set-up by logging into your Stripe dashboard and viewing: https://dashboard.stripe.com/account/transfers
A Few Examples from our Kitchens
Kitchen A used to break down each Stripe transaction and attribute it to a specific kitchen user each time money was transferred to his bank account from Stripe, until they learned that their ‘powers that be’ only needed the totals - they did not need individual clients' transactions. So, the kitchen set-up Stripe to dump their collected kitchen and storage fees into their bank account once a month, and they simply classify it as “kitchen rent” and “storage rent” as a split transaction in Quickbooks. They use the Total Revenue by Type report to pull these numbers by category. For their own kitchen utilization knowledge and forecasting, they use other Food Corridor reports to track client-specific items, such as kitchen times, charges, bookings, etc. per client.
Kitchen B compares Stripe transfers and matches them up with TFC bills/clients, because tracking that user detail in Quickbooks is necessary for them. (Note: This is less common.) To do this, they post their Stripe transactions into a general QB account, and then use the Billed Line Items report or Payment Details report to confirm on or after the 1st of the following month. The Payment Details report offers quicker reconciliation, where the Billed Line Items report offers more detail if more investigation is needed.
While The Food Corridor does not directly integrate with Quickbooks, you may have luck with integrations between Stripe and Quickbooks.
If you use Quickbooks Online, there are a handful options listed on Stripe here that may help, such as Sush.io, Greenback, Business Payments, Commerce Sync, and PennyPipe. You may also check out Zapier's Stripe and Quickbooks integration automations. Please note that The Food Corridor is not familiar with these companies and cannot offer endorsements or recommendations.
If you use Quickbooks Desktop, check your Stripe dashboard's Data Settings to see if the IIF file will work for your needs, via a direct import into Quickbooks. Here is more about that.
Questions about your specific situation? Let's chat!