Reconcile Square in Xero — Match Sales to Bank Deposits

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Reconcile Complete

Xero Bank Statement Format
valid rows

Reconcile your Square account in Xero. Match individual sales to bank deposits, track processing fees, and close your books accurately.

No API required
Browser-based processing
Run on Google Cloud Platform

Download Sample

Sample transactions CSV

Download

Tool Rating

4.6 / 5 (189 votes)

How It Works

1

Export

Square Dashboard → Reports → Transactions → Export

2

Convert

Upload here, select reconciliation options

3

Import

Import to Square Clearing Account in Xero

4

Reconcile

Match bank deposits as transfers from Clearing Account

Your Data is Safe

Bank-Level Security

256-bit SSL encryption. Same standards as major financial institutions.

No Data Storage

Files are processed directly in browser. No calls to our servers.

GDPR Compliant

Full EU data protection compliance. Your privacy rights protected.

ISO/IEC 27001 Certified GDPR Compliant Swiss Privacy CCPA Compliant

Field Mapping

How Square Transactions fields map to Xero Bank Statement

Square Transactions Source Value Xero Bank Statement Target Value Note
Date 2026-01-15 → Date 2026-01-15 Transaction date
Total Collected 102.20 → Amount 102.20 Gross amount charged (single mode: Net Total)
Fees -2.90 → Amount -2.90 Processing fees (two-line mode only, negative)
Customer Name John Smith → Payee John Smith Customer name or 'Square Sale'
Transaction ID abc123def456 → Reference abc123def456 Unique transaction identifier
Description In-store purchase → Description In-store purchase Sale description with card info

Data Transformation

Each Square transaction becomes 1 or 2 bank rows depending on mode

Input Square Transaction

One POS transaction with sales, fees, tips, taxes

Key columns: Transaction ID, Date
1:N — One input row creates multiple output rows
Output Xero Bank Line 1 or 2 rows per input

CR Sale Line Money received from customer
DR Fee Line (two-line mode only) Square processing fee (negative)
Net Total = Total Collected + Fees (fees are negative)

Why Square Reconciliation Is Challenging

The Bundled Deposit Problem

Square deposits aggregated amounts to your bank — multiple sales bundled into single deposits. Your bank shows $500 deposited, but that could be 30 individual transactions minus fees. Professional bookkeepers solve this with a "Square Clearing Account" that receives individual transactions while your bank receives the aggregated deposits.

How This Tool Helps

We convert Square Transactions to Xero bank statement format with fee splitting: individual sales as positive amounts, fees as separate negative amounts, and refunds handled correctly. Import to your Square Clearing Account in Xero, then reconcile deposits as transfers. When done correctly, the clearing account balance should match Square's pending balance.

Common Bank Statement Import Errors

Issues you might encounter when importing Transactions Export data to Bank Statement - and how we solve them

Cash Transactions in Clearing

Cash doesn't flow through Square to bank

Enable 'Exclude cash transactions' option

Cash should go to separate Cash on Hand account

Fees Have Wrong Sign

Square exports fees as negative, Xero needs negative for outflows

We preserve the negative sign automatically

Check that fee rows show negative amounts

Transaction vs Deposit Date

Bank shows deposit on different day than transaction

This is normal - Square batches daily, deposits next day

Match by Deposit ID or batch deposits together

Gift Card Recorded as Revenue

Gift card sales are liability, not revenue

Enable gift card detection for proper handling

Post to Gift Card Liability account, not Sales

Why Use This Tool?

Transaction-Level Detail

Every sale, tip, and fee as individual bank statement lines.

Fee Tracking

Square processing fees extracted as separate expense transactions.

Deposit Matching

Match individual transactions to aggregated bank deposits.

Month-End Ready

Clearing account zeroes out when all deposits are matched.

Audit Trail

Transaction IDs preserved for tracking back to Square.

Browser Processing

Financial data processed locally. Never sent to external servers.

Frequently Asked Questions

Create a new bank account in Xero (Accounting → Bank Accounts → Add Bank Account). Name it 'Square' and select 'Other' as the account type. This acts as a holding account for Square transactions.
Cash sales aren't deposited by Square — you handle that cash directly. Including them in the clearing account would create a mismatch since that cash never flows through Square's deposit system.
After processing all transactions and matching all deposits, your Square Clearing Account balance in Xero should approach zero (minus any pending deposits). Any significant difference indicates missing transactions or unmatched deposits.
Tips are included in the Total Collected and deposited to your bank. By default, we include tips in the sale amount. You can separate them if you track tips differently.
Most businesses reconcile monthly. High-volume POS businesses may reconcile weekly. The key is consistency — reconcile at the same time each period.

Square → Xero Data Ecosystem

All available data flows from Square to Xero

Square Customers Export Customer directory with contact info, addresses, and purchase history
→
Xero Contact Customer or supplier contact records
Given Name + Family Name → Name Email Address → EmailAddress Given Name → FirstName
Customer sync, supplier management
Square Transactions Export Payment transactions with fees, tips, taxes, and settlement data
→
Xero Bank Statement Bank transactions for reconciliation
Date → Date Total Collected → Amount Fees → Amount
Payout reconciliation, fee tracking Current tool
Square Transactions Export Payment transactions with fees, tips, taxes, and settlement data
→
Xero Sales Invoice Sales invoices for accounts receivable (B2B, payment terms)
Transaction ID → InvoiceNumber Date → InvoiceDate Date + terms → DueDate
B2B sales, invoiced orders, payment terms