Before You Start

This guide assumes you have an active Stripe Capital loan and an existing QuickBooks Online subscription.

Overview

25 min
Setup Time
Intermediate
Difficulty
Daily
Maintenance

What You’ll Learn

  • How to record the initial Stripe Capital deposit
  • Setting up the correct liability and expense accounts in QuickBooks
  • Accurately tracking automated daily repayments
  • Reconciling the loan balance with Stripe statements

1. Preparation Steps

Before recording any transactions, ensure these accounts are set up in QuickBooks Online:

Required Accounts

  • Stripe Capital Loan (Long-Term Liability)
  • Stripe Capital Repayments (Expense)

Optional (but recommended)

  • Stripe Capital Fees (Expense)
  • Interest Expense (Expense)
  • Cash Advance (Current Liability)

2. Understanding Stripe Capital

Stripe Capital offers merchant cash advances, not traditional loans. Understanding this difference is key to proper accounting.

Merchant Cash Advance (Stripe Capital)

This is a lump sum payment repaid automatically as a percentage of your daily sales.

Pros:
  • Easy approval process.
  • Automated daily repayments.
  • No fixed term; repayment fluctuates with sales.
Cons:
  • Higher effective APR than traditional loans.
  • Can impact cash flow on slower sales days.
  • Fixed fee structure, not traditional interest.

Traditional Business Loan

A standard loan with fixed monthly payments and a clear interest rate.

Expert Tip: Stripe Capital is a merchant cash advance. It’s crucial to understand it’s repaid as a percentage of your daily sales, not a fixed monthly payment with traditional interest. This affects how you track principal vs. fees.

3. Step-by-Step: Accounting Workflow

Here is the high-level workflow for correctly tracking your Stripe Capital loan.

Here is a sample code block to show how a daily repayment record might look.

{
  "repayment_id": "rep_abc123",
  "payout_id": "po_xyz456",
  "date": "2025-01-15",
  "total_deduction": 50.00,
  "principal_paid": 45.00,
  "fee_component": 5.00,
  "remaining_balance": 1500.00
}

4. Recording the Loan in QuickBooks

  1. 1

    Record the Initial Deposit

    When Stripe deposits the capital into your bank, categorize this deposit to the “Stripe Capital Loan” liability account you created.

  2. 2

    Create a Journal Entry (Recommended)

    For finer control, create a journal entry: Debit your Bank account, Credit “Stripe Capital Loan” for the principal amount received.

  3. 3

    Verify Balance Sheet Impact

    Check your Balance Sheet to ensure the “Stripe Capital Loan” liability account reflects the correct outstanding principal amount.

Common Error: Misclassifying the Loan

Ensure the “Stripe Capital Loan” account is set as a ‘Long-Term Liability’ (or ‘Other Current Liability’ if short-term) in QuickBooks, not an Income account. This ensures it appears correctly on your balance sheet.

5. Tracking Daily Repayments

Repayment Tracking Checklist

  • Monitor Stripe payout reports for daily deductions
  • Record a journal entry daily/weekly for repayments
  • Allocate the repayment amount to principal and fee components
  • Reconcile your bank account with net Stripe deposits

Need Help?

Stuck on Reconciliation?

Need a hand with your Stripe Capital reconciliation or other complex accounting? Our experts are here to help ensure your books are perfect.

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