Stripe Integration with ReAI

If your business takes payments through Stripe, integrating it with your accounting software eliminates hours of manual data entry every month. The ReAI-Stripe integration automatically imports your transactions, matches payments to invoices and handles the accounting entries for you.

For businesses processing hundreds or thousands of Stripe transactions per month, this is not a nice-to-have – it is essential for keeping your books accurate and your time focused on running the business.

What the integration does

When you connect Stripe to ReAI, the system:

• Imports transactions from Stripe automatically (sales, refunds, disputes, payouts)
• Separates Stripe fees from the gross payment amount
• Matches payments to outstanding invoices in your accounts
• Handles refunds by creating credit notes and reversing the original entries
• Manages multi-currency transactions with automatic exchange rate conversion
• Reconciles payouts – matching what Stripe deposits in your bank to the individual transactions that make up that payout

How Stripe payments flow into your accounts

Understanding the flow of money helps you make sense of the accounting entries.

The transaction flow

1. Customer pays £120 (including £20 VAT) via Stripe on your website
2. Stripe collects the full £120
3. Stripe deducts its fee (e.g., 1.4% + 20p = £1.88)
4. Stripe deposits £118.12 into your bank account (as part of a batch payout)

The accounting entries

For the sale:

For Stripe fees (£1.88 + VAT on fees):

For the payout to your bank:

The Stripe clearing account acts as a holding account, and its balance should always reconcile to the funds Stripe is holding but has not yet paid out to you.

Handling Stripe fees

Stripe charges fees on every transaction. These fees are a legitimate business expense and should be recorded separately from your revenue – not netted off against sales.

Common Stripe fee structure (UK)

VAT on Stripe fees

Stripe’s fees are subject to VAT (Stripe charges UK businesses VAT on its processing fees). If you are VAT-registered , you can reclaim this input VAT. Stripe provides a monthly invoice showing the total fees and VAT charged.

Make sure this invoice is recorded in your accounts and the input VAT is claimed on your return.

Reconciling Stripe payouts

Stripe batches multiple transactions into a single payout to your bank account. This means a single bank deposit might include dozens or hundreds of individual sales, minus fees and refunds.

Without the integration, you would need to manually break down each payout into its component parts – a tedious and error-prone process. The ReAI integration does this automatically:

• Each individual sale is recorded as a separate transaction
• Fees are extracted and recorded as expenses
• Refunds are matched to the original sale
• The net payout amount matches what appears on your bank statement

Refunds and disputes

Refunds

When you issue a refund through Stripe, the integration:

1. Creates a credit note against the original sale
2. Reverses the revenue and output VAT
3. Records the return of the Stripe fee (if applicable – Stripe does not refund the original processing fee on refunds)

Chargebacks (disputes)

If a customer disputes a charge, Stripe:

1. Deducts the disputed amount from your next payout
2. Charges a £15 dispute fee (non-refundable even if you win)

The integration records the chargeback and fee as separate transactions. If you win the dispute, the refunded amount is recorded as income.

Multi-currency transactions

If you sell internationally, Stripe handles currency conversion automatically. The integration records:

• The original amount in the customer’s currency
• The converted amount in GBP (using Stripe’s exchange rate)
• Any exchange rate difference between the transaction date and the settlement date

Exchange rate gains and losses are recorded separately in your accounts, ensuring your revenue figures are accurate in your reporting currency.

Subscriptions and recurring payments

If you use Stripe Billing for subscriptions, the integration handles:

• Automatic invoice creation for each billing cycle
• Failed payment tracking and retry logic
• Proration when customers change plans mid-cycle
• Revenue recognition – matching income to the period it relates to

For subscription businesses, this automated revenue recognition is particularly valuable for producing accurate monthly management accounts .

Setting up the integration

Connecting Stripe to ReAI typically involves:

1. Authorise the connection – log into ReAI and connect your Stripe account via API
2. Map your accounts – tell ReAI which accounts to use for sales revenue, Stripe fees, the clearing account and VAT
3. Set your start date – choose when to start importing transactions (you can backfill historical data)
4. Review the initial import – check that transactions are categorised correctly and adjust any mapping rules
5. Enable automatic sync – new transactions import automatically going forward

Tips for a clean integration

• Set up a Stripe clearing account in your chart of accounts – this makes reconciliation much cleaner than posting directly to your bank account
• Download and file Stripe’s monthly invoice for your fees – you need this for your VAT return
• Review imported transactions weekly – catch any miscategorised items early
• Reconcile your bank account regularly – match Stripe payouts to the transactions that make them up
• Keep your invoice numbering consistent – if you use Stripe’s invoicing alongside manual invoices , make sure your numbering does not overlap

When Stripe data and your books do not match

Common reasons for discrepancies:

If you sell through multiple channels (website, Amazon , retail), make sure each channel’s transactions are clearly separated in your accounts. The Stripe integration handles the online payment channel; other channels need their own recording process.