VAT Recording Challenges with Squarespace, Stripe, and Xero
Hello fellow small business owners in the UK!
I run an e-commerce business hosted on Squarespace, using Stripe for payments and Xero for our accounting needs.
I’m struggling to figure out how to get Squarespace or Stripe to automatically record the VAT collected from our sales in Xero. From what I’ve found, there’s no direct integration between Stripe payments from Squarespace and Xero, so we’re using a third-party tool (Bankfeeds.io), but VAT still isn’t being automatically tracked.
Is anyone else facing this issue? If so, do you have any tips or advice on how to streamline this process?
Thanks in advance for any help!
(P.S. Right now, our bookkeeper manually records the VAT from our e-commerce income, and while we’re up to date on VAT returns, I believe there must be a more automated solution out there!)
2 Comments
Hi there!
It sounds like you’re juggling quite a few pieces in your current setup. You’re definitely not alone in this; many small business owners face similar challenges when trying to integrate multiple platforms.
Here are a few suggestions that might help streamline your VAT recording process:
Check Squarespace Settings: First, ensure that your Squarespace store is set up to collect VAT correctly on sales. Double-check your tax settings to make sure that VAT is being calculated on all applicable sales.
Use Xero’s Built-in Features: If you haven’t already, take advantage of Xero’s built-in features for handling VAT. You can set up a specific tax rate for your e-commerce sales in Xero. This way, when transactions are imported via your integration, the correct VAT can be assigned.
Automate with Zapier or Integromat: If Bankfeeds.io isn’t capturing VAT automatically, consider using automation tools like Zapier or Integromat (now Make). You can set up a workflow that triggers whenever a new sale is recorded in Stripe or Squarespace, and then create an entry in Xero that includes the VAT. This may require some custom setup, but it could save you time.
Explore Other Integration Tools: Look into other third-party integrations that specialize in connecting e-commerce platforms like Squarespace and payment processors like Stripe to accounting software like Xero. Tools like A2X or SumoPay may offer better VAT handling capabilities.
Consult Your Bookkeeper: Since your bookkeeper is already familiar with your processes, it might be worth discussing these options with them. They might have insights or additional suggestions on how to streamline the VAT recording process.
Reach Out to Support: Don’t hesitate to reach out to the customer support teams for Squarespace, Stripe, and Xero. They may have additional advice or updates regarding integrations and could point you toward resources that better address your needs.
While it can be frustrating, there are usually ways to automate and simplify these processes. Hopefully, one of these suggestions will lead you closer to a solution!
Good luck, and I hope you find an efficient way to handle your VAT recording!
Best,
[Your Name]
Hi there!
I completely understand your frustration with the VAT recording process across Squarespace, Stripe, and Xero—it can be quite a challenge to streamline this without an out-of-the-box solution. While you’re already using Bankfeeds.io, which is a step in the right direction, there are a few additional strategies you might consider to simplify your workflow and ensure accurate VAT tracking.
1. **Zapier Integration**: If you haven’t explored this yet, Zapier can help create automated workflows between your platforms. For example, you can set up a Zap that records transactions in Xero each time a payment is completed in Stripe. You could customize the Zap to include VAT amounts which might save your bookkeeper some manual work.
2. **Utilize Xero’s VAT Features**: Double-check that you’re making full use of Xero’s tax functionalities. Ensure that your products or services in Xero are set with the correct VAT rates. This may not automate the entire process, but it can help streamline reporting and ensure your calculations are accurate.
3. **Consult with Your Bookkeeper**: Since you’re working closely with a bookkeeper, it might be useful to have them review your current setup. They might be aware of Xero add-ons or best practices specific to your industry that could assist with VAT tracking.
4. **Community Forums and Groups**: Consider joining specific forums or online groups focused on Squarespace, Stripe, or Xero. These communities can often share firsthand experiences and solutions