Growing Your Business, Lesson 4: Tracking Your Growth
Section 3: Integrating with Quickbooks
An incredibly handy integration for all savvy business owners, connecting your HoneyBook account with QuickBooks enables the systems to automatically sync your payments from HoneyBook directly into your QuickBooks account. Basically, it makes it extra easy to manage all your accounting in one place!
PLEASE NOTE: QuickBooks integration with HoneyBook is only available for Simple Start, Essentials, and Plus QuickBooks customers, and only for one QuickBook account per HoneyBook account. We cannot currently integrate with QuickBooks Self-Employed, QuickBooks Desktop, or multiple QuickBooks accounts.
In this section, we'll review:
- How the integration works
- How to set it up
- What HoneyBook payments will look like in QuickBooks
How does it work?
When a client submits payment to you in HoneyBook, the integration will automatically create an invoice and payment in QuickBooks for you. The sync should happen as soon as a payment has been made on an Invoice or Proposal in HoneyBook; then, each time a new payment is made on that Invoice or Proposal, your Quickbooks Online invoice will update accordingly.
Once the payment deposits into your bank account, you can match this payment in your banking section in QuickBooks.
We also account for transaction fees for you; after you've matched a payment, you can view all transaction fees from the Expenses section in QuickBooks.
You should see the following data sync from HoneyBook to QuickBooks Online:
- Customer’s name and email
- Any line items that have a price associated
- Subtotal and total
- Transaction fees
You can confirm that Invoices have synced to your Quickbooks Online account in the Payments tab of your Bookkeeping tool, under the Paid Payments section.
If there is a green QuickBooks logo in the Status box, the payment on that Invoice has successfully synced.
Setting up your QuickBooks integration
1. From your HoneyBook home page, select Tools from the top navigation bar.
2. Select Bookkeeping.
3. Select the QuickBooks tab.
4. Click Connect to QuickBooks.
5. Follow the prompts to input your QuickBooks Online login information and authenticate your account.
6. Once you’ve connected, you’ll need to select your QuickBooks tax rate (if you charge sales tax), and your QuickBooks deposit account (the account your HoneyBook payments come into). Head back to your QuickBooks tab in HoneyBook.
7. From the menus provided, select your tax rate and the default QuickBooks account to which you'll be linking.
PLEASE NOTE: The default account you select here should match the account that you will be receiving payments to in your QuickBooks account. This will be the account that you see listed on your dashboard in your QuickBooks account.
If you're a QuickBooks Canada user:
- Any items with no tax on your HoneyBook invoice will automatically default to zero-rated tax when synced in QuickBooks.
- Any items with tax on your HoneyBook invoice will automatically default to your default tax rate set in HoneyBook when synced in QuickBooks.
- For any items with a different tax rate than your default tax rate (tax in a different province etc.), you will need to manually update that tax rate in QuickBooks.
What payments will look like in QuickBooks
Once you've integrated HoneyBook with QuickBooks and selected your default QuickBooks account, any payments you receive in HoneyBook will automatically sync with your Quickbooks account.
With this integration in place, you can view all HoneyBook payments received in QuickBooks by clicking on the Sales tab from your QuickBooks Dashboard.
Once you're in the Sales section, you can click on any invoice for more information. Within the invoice, you'll be able to review the services that the client is receiving, which should match the service names that you've listed in HoneyBook.
If your payment schedule in HoneyBook includes multiple payments, you'll see the number of payments submitted thus far in the top right corner. You can also click this link to view more information for all payments that have been submitted on the Project.
In the final section of this course, HoneyBook Payments and Your Taxes, we'll do a quick overview of what to expect come tax time with the money you've transacted through HoneyBook!
Have questions? Feel free to send us a message by clicking the Question Mark icon on any HoneyBook page. Our team is always happy to help!