How to reconcile your KAJABI Payments in Xero or QBO
Sep 17, 2023
We’re testing out KAJABI payments over at our sister brand, The Ambitious Bookkeeper. What we’ve noticed so far…
It isn't as easy as reconciling Stripe or PayPal.
As Xero users, we're able to link PayPal and Stripe as bank accounts in Xero. This enables automatic daily feeds of transactions allowing us to have a real time view of sales. When we switched over to KAJABI payments, we lost this ability, and the ability to see individual sales and transaction fees.
Why is tracking individual sales important?
First, let's chat about why it's important to track each individual sale in your accounting system.
- You want to be able to understand which programs, courses, products, etc are profitable, so you want to track each transaction that comes in. This allows you to setup "rules" in your accounting system for each product, coding it to a specific revenue stream. For example:
- Digital Products
- Signature Program
- Another reason is to be able to track the processing fees associate with each sale. When you record your sales, you should be recording them at the price your customers are paying, and recording the fees as an expense.
Here is the solution:
If you've enabled KAJABI payments, make sure you give your bookkeeper access to your Kajabi account, and you might expect a fee increase for the extra work this will require from your bookkeeper. (Honestly, anytime you add a payment processor, it adds a layer of work)
If you're a bookkeeper or DIYing your books,
- Setup KAJABI PAYMENTS as a bank account in your accounting software
- In KAJABI, head to Sales > Payments > Transactions > & export the detail and import into your accounting software.
- Reconcile KAJABI PAYMENTS like you would a bank account.
If you use KAJABI in your online course business & you need help with your accounting, contact us!