Reconcile Square transactions

Once you've connected Square with Xero, you'll need to reconcile your Square transactions regularly. To speed up your bank reconciliation, set up bank rules that match transactions from your merchant account to your Square invoices. For organisations in Canada, Xero automatically creates Square bank rules during setup.

Reconcile your Square non-cash invoices

For Canadian users only, when Square deposits money in your bank account, go to your bank reconciliation screen in Xero and reconcile the Square deposits using the Square bank rules.

Otherwise, when you receive payment, reconcile the deposits using the bank rules you've set up. When setting up a bank rule, use your payment processor as a search condition rather than Square.

Bank reconciliation in Xero

Image showing bank reconciliation screen

Reconcile cash sales

Reconcile your Square cash sales invoices

Xero creates sales invoices for your cash Square sales if you selected this option in your Square settings.

When you deposit your daily cash sales in your bank account, go to your bank reconciliation screen in Xero. Reconcile your cash deposits by creating receive money transactions and coding them to your Square cash clearing account.

How to enter a receive money transaction

Reconcile your Square receive money transactions

Xero creates receive money transactions for your cash Square sales if you selected this option in your Square settings.

When you deposit your daily cash sales in your bank account, go to your bank reconciliation screen in Xero. Reconcile your transactions using the Find & Match function.

You won't need to use your cash clearing account if you have Square receive money transactions.

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