How do I record Stripe payouts that are net of fees?

Asked by Ryland B.

How do I record Stripe payouts that are net of fees?

Answer

By Ryland Beard, founder of Switchbooks · October 27, 2026

Record the full sale, not just the payout. If customers paid $1,000 and Stripe kept $32 in fees, your bank sees a $968 deposit. Your books should show $1,000 of sales and $32 of merchant fees, which nets to the same $968.

There are two common ways to do it. With a few payouts a month, book each one as a journal entry: $1,000 to sales, $32 to fees and $968 to the bank, with the bank deposit matched to that entry. With many, post every payout to a Stripe clearing account, then book one journal entry each month from Stripe's Payout reconciliation report, which groups each payout's transactions into charges, refunds and fees. Refunds reduce sales, and once that entry is booked the clearing account should be back to zero.

Switchbooks does not connect to Stripe directly. It sees each payout when it lands in your bank. Give Switch the Stripe report as a file, and he can book either one for you.

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