7 | How to Use Stripe for Refunds and Reconcile at Month End

7 | How to Use Stripe for Refunds and Reconcile at Month End

Introduction

This guide provides a detailed step-by-step approach to processing refunds in Stripe and reconciling transactions at month end. Follow along to understand how to navigate the dashboard, perform refunds, and manage your monthly financial records efficiently.

Section 1: Processing Refunds in Stripe

Step 1: Log in to Stripe
Navigate to Stripe's Login Page and enter your credentials to access your account.

Step 2: Locate the Payment to Be Refunded

  1. From the Dashboard, click on Transactions in the left-hand menu.





  2. Use the Search bar at the top to find the specific payment. You can search by customer name, email, or transaction ID.

Step 3: Refund the Payment

  1. Click on the specific payment you want to refund.

  2. On the payment details page, click Refund in the top right corner.


  3. Enter the refund amount. You can refund the full amount or specify a partial amount.

  4. Click Refund to finalize the process.

Step 4: Confirm Refund Status

Once the refund is processed, you will see the status change on the payment details page. The status will update to Refunded or Partially Refunded.

Section 2: Month-End Reconciliation with Stripe

Step 1: Download the Monthly Report

  1. From your Dashboard, go to Reports in the left-hand menu.


  2. Click on Balance Summary or Payout Reconciliation to view a summary of your monthly transactions.


  3. Download the CSV file for the specified month.

Step 2: Review Payouts and Fees

  1. Open the downloaded CSV file and locate the columns for Payout Amount, Fees, and Refunds.

  2. Cross-reference these amounts with your bank statements to ensure that all transactions are accounted for.

Step 3: Check for Pending Refunds

  1. In the Stripe Dashboard, go to Payments and filter by Refunds to view all refunded transactions.

  2. Make sure all refunds for the month have been processed correctly and matched with the bank entries.

Step 4: Reconcile the Account

  1. Total the Refunds, Payouts, and Fees for the month using the CSV file.

  2. Use accounting software or a spreadsheet to ensure these match your internal financial records.

Tips for Successful Reconciliation

  • Always double-check the transaction dates as some payouts might occur in the following month.

  • Stripe Fees are deducted before payouts, so ensure these are correctly recorded to avoid discrepancies.