How does 17hats invoicing and bookkeeping work?

The symbiotic relationship between 17hats invoicing and bookkeeping makes reporting revenue and sales tax an automatic process. There is no need to decipher the amount of sales tax to pull out from an invoice, or how to break down deposits from PayPal to put towards each invoice.

There are a few things you need to be aware of so that you understand the flow of bookkeeping.

1. Bookkeeping is on Cash Basis. That means the date of the payment is also the date of the bookkeeping record. 17hats uses this to generate your P&L and Sales Tax reports.

2. When a partial or full payment is made, not only will the invoice reflect the new balance, the bookkeeping module will create a transaction for the sale (based off the revenue category assigned to the invoice item), and a transaction for sales tax when applicable (based off of the sales tax category assigned)

3. So what do you do with the deposit transactions from your bank feed? You should categorize them as "Transfer from accounts". Categorizing "Transfer from accounts" eliminates the "double post" effect of counting the revenue twice. 

4. PayPal and Stripe do not report the merchant fee to your bank. Meaning what you receive in your account is less than what the client paid for so you have to manually expense the merchant fees to account for the difference. 

KeywordSearch:  Bookkeeping, Invoicing

Bookkeeping

  1. How does 17hats invoicing and bookkeeping work?
  2. Video: Bookkeeping & Reporting
  3. Video: Syncing Bank Accounts
  4. Video: How do I categorize or split expenses?
  5. How do I connect my bank account to 17hats?
  6. How do I manually add a bank account?
  7. How do I categorize payments deposited into my bank?
  8. How do I categorize transactions?
  9. How often are transactions imported from my linked bank account?
  10. How do I find my bank?
  11. How do I record expenses?
  12. How do I add custom accounting categories?
  13. How should I handle gratuities in 17hats?
  14. How do I apply a transaction to an invoice?
  15. What is the profit and loss report in 17hats?
  16. How do I manage my payments?
  17. How do I manually refresh my bank account?
  18. How do category auto-suggestions work?
  19. Why is my bank not connecting or updating automatically?
  20. How do I export my 17hats Bookkeeping to QuickBooks Desktop?
  21. What does, "Login error - User needs to complete USP conversion at FI website" mean?
  22. What characters can I use in my online banking password when connecting my bank to 17hats?
  23. How do I connect my Barclays UK Bank account to 17hats?
  24. How do I connect my HSBC UK account to 17hats?
  25. Why do synced invoices from 17hats show up under "Undeposited Funds" in Quickbooks Online?
  26. What does the warning "Script not written yet?" mean when I try to connect my bank?
  27. Can I connect more than one PayPal account as a bank option to 17hats?
  28. How can I rename my bank account?
  29. What do I do if I'm having trouble connecting to Key Bank?
  30. What does it mean when I try to connect my bank and see "Your institution returned zero accounts associated with your login"?
  31. What does Error Code 192 mean when trying to connect my bank?
  32. Why did I get a warning message when trying to sync my invoices to Quickbooks Online?

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