How We Fixed Revenue Reporting Discrepancies Between Square and QuickBooks Online
For many small business owners, keeping accurate revenue records can be tricky — especially when using platforms like Square and QuickBooks Online (QBO) together. One of our clients faced a common issue: deposits from Square sales were arriving days later, causing a mismatch in monthly revenue reporting.
The Problem
In this client’s setup, Square was synced with QBO to track both revenue and sales tax. However, because Square deposits take a few days to process, sales recorded in one month often ended up being deposited in the following month.
For example:
A sale made in August might not deposit until September.
QBO would then record the deposit in September, even though the sale actually occurred in August.
This caused a mismatch between Square’s revenue reports and QBO’s reports, making accurate monthly financials challenging.
The Solution
To solve this, we carefully compared reports from both Square and QBO to identify discrepancies. Then, we:
Created an invoice in QBO dated for the previous month (August in our example) for the amount in question.
Matched the invoice to the future deposit from Square.
Verified that revenue reported in QBO now matched Square for the correct month.
This method ensures that financial reporting reflects when sales actually occurred — not just when deposits arrive.
The Results
After implementing this process, our client now has:
Accurate monthly revenue reporting in QBO
Correct sales tax tracking for each month
Simplified reconciliation between Square and QBO
Takeaway
If you’re using Square and QBO together, timing differences in deposits can create reporting challenges. Using reports from both platforms and adjusting invoices in QBO can help align your revenue and give you a true picture of your monthly sales.
Need help reconciling your Square and QBO accounts? Book a free consultation today and we’ll make sure your revenue reporting is accurate every month.