It is important to understand what apps are connected to your accounting platform, e.g. QuickBooks, to prevent double posting
Bookkeep automates the posting of sales, fees, and deposit data for various apps. Therefore, it is important to understand what apps you have connected to your accounting platform.
In the case of QuickBooks Online, this can be done by navigating to the Apps view as discussed here. This is critical to understand to prevent the double booking of financial data. Let me explore this further with an example below.
Example: Shift4Shop store accepting Paypal payments and the Connect to Paypal app
Let's consider you have an ecommerce store built upon Shift4Shop. On this ecommerce store, you want to offer various payment methods to drive up sales. In this case, you are using Paypal as a payment method. Additionally, prior to learning about Bookkeep you began using the Connect to Paypal app to book Paypal transactions into QuickBooks. Please do note that the Connect to Paypal app does not summarize for the day and posts each transaction independently.
When setting up Bookkeep for this ecommerce store, you connect our Shift4Shop app. This connection will post one sales journal entry per day for the prior day sales involving all payment methods. What this situation has resulted in (if using the Connect to Paypal app simultaneously) is the double booking of Paypal sales since they would be posting via the Shift4Shop app by Bookkeep as well as the Connect to Paypal app ("Connect to PayPal app lets you handle your PayPal transactions the same way as other bank transactions.")
In this situation, you have a few options:
1. Discontinue the Connect to Paypal app to prevent duplication of Paypal transactions coming from Shift4Shop.
2. Exclude the transactions via the Connect to Paypal app that originated from the Shift4Shop store.
3. Book the Paypal orders via the Shift4Shop store to a balance or clearing account (see image below where "Pay with PayPal" line can be mapped to this clearing account). Additionally, book the Payments received from the Shift4Shop store that are booked via the Connect to Paypal app also to this clearing account. This essentially will show payments transferring from Shift4Shop to the Paypal account. Think of this as an increase when a payment is expected at order completion and a decrease to the clearing account when the payment is actually received in the Paypal account. This would allow both Bookkeep and the Connect to Paypal app to operate in unison to ensure all expected deposits to Paypal are received.
In summary, the takeaway is to be aware of what apps are connected to your accounting platform. This is important to ensure entries are not being double booked or booked incorrectly. If you have any questions, reach out to firstname.lastname@example.org.