Before You Start

This guide assumes you have active subscriptions for Square for Restaurants and QuickBooks Online. A basic understanding of restaurant accounting principles is also helpful.

Overview

40 min
Setup Time
Intermediate
Difficulty
Daily
Maintenance

What You’ll Learn

  • How to prep your QuickBooks accounts for restaurant data
  • Automating daily sales, tips, and payment syncs
  • Mapping specific Square categories (food, beverage, gift cards, comps) to QBO
  • Reconciling Square payouts with bank deposits

1. Preparation Steps

Before connecting your systems, ensure these accounts are set up in QuickBooks:

Required Accounts

  • Square Sales (Income)
  • Square Tips Payable (Liability)
  • Square Payment Processing Fees (Expense)
  • Square Clearing Account (Bank/Asset)
  • Sales Tax Payable (Liability)

Optional (but recommended)

  • Gift Card Liability (Liability)
  • Discounts & Comps (Income Reduction or Expense)
  • Refunds Processed (Expense)

2. Choosing Your Sync Method

You have two main options, each with serious pros and cons.

Method A: Manual Entry / CSV Import

This method involves manually entering data or importing CSV reports from Square.

Pros:
  • It’s free.
  • Full control over each entry.
  • Good for very low transaction volume.
Cons:
  • Extremely time-consuming.
  • Highly prone to manual errors.
  • Lacks granular detail for reconciliation.
  • Not scalable for growing businesses.

Method B: Third-Party Integrations (Synder, Commerce Sync)

These are paid apps that offer automated, detailed synchronization.

Expert Tip: We strongly recommend using a dedicated third-party integration like Synder or Commerce Sync. These tools automate the complex mapping of Square’s detailed sales data, including tips, fees, and taxes, into QuickBooks, streamlining reconciliation.

3. Step-by-Step: Automating with a Connector

Automating your Square for Restaurants data into QuickBooks Online provides accuracy and saves significant time.

Here is a sample code block to show how an API call might represent a Square transaction.

{
  "transaction_id": "SQ123456",
  "date": "2025-10-29",
  "total_sales": 550.75,
  "tips_collected": 75.00,
  "fees": 15.20,
  "line_items": [
    { "item": "Pasta Carbonara", "quantity": 2, "price": 28.00 },
    { "item": "House Wine", "quantity": 1, "price": 45.00 }
  ]
}

4. Setting Up Your Integration (e.g., Synder)

  1. 1

    Connect Square to the Integration App

    Authorize the app (e.g., Synder) to access your Square for Restaurants data. Ensure you grant necessary permissions for sales, tips, and payment details.

  2. 2

    Connect the Integration App to QuickBooks

    Link your QuickBooks Online account within the app’s settings. Grant admin access when prompted to allow for full data synchronization.

  3. 3

    Configure Sync Settings

    Choose your preferred sync frequency (daily recommended) and review the default mapping. Adjust settings for how you want transactions to appear in QuickBooks (summary vs. detailed).

  4. 4

    Map Specific Accounts

    Carefully map Square sales categories, tips, discounts, and payment processing fees to the corresponding accounts you set up in QuickBooks Online.

Common Error: Missing Tip Liability Account

Ensure you have a ‘Square Tips Payable’ liability account in QuickBooks. This is crucial for properly tracking and paying out tips to staff, preventing discrepancies.

5. Testing Your Setup

Test Import Checklist

  • Import a test day’s transactions from last week
  • Verify total sales, tips, and taxes match Square reports
  • Confirm processing fees are accurately expensed
  • Check that the Square Payout (bank deposit) clears the Square Clearing Account

Need Help?

Get Support

Having trouble with your restaurant’s unique setup? Our experts specialize in POS integrations and can tailor a solution for your specific needs.

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