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QuickBooks Integration FAQs

Answers to common questions about QuickBooks syncing

Teddy Widom avatar
Written by Teddy Widom
Updated over 6 months ago

Is the QuickBooks sync one-way or two-way?

The Materio QuickBooks integration is a one-way sync from Materio into QuickBooks. Changes do not sync back the other way (from QuickBooks into Materio).

As a rule of thumb, create, edit, and delete your records in Materio only. Avoid updating or deleting synced records directly on QuickBooks. Changes you make on QuickBooks will not sync back into Materio. They may even be overwritten the next time Materio syncs an update into QuickBooks.

Will syncing cause duplicates on QuickBooks?

Preventing duplicate customers, projects, or vendors

Before syncing a customer, project, or vendor, Materio automatically searches for existing QuickBooks records with exactly matching names or emails. If Materio finds an exact match in QuickBooks, we use that match rather than creating a new record.

If you do get duplicates in QuickBooks (possibly because a name or email did not exactly match) then you can clean them up by merging the duplicates in QuickBooks. Materio will automatically detect and use the merged record for all future syncing.

Prefer merging duplicates on QuickBooks over simply deleting or deactivating them. Simply deleting or deactivating duplicates (without merging them into something else) is not an effective way to remove them, as Materio will automatically recreate or reactivate any inactive QuickBooks customer, sub-customer, project, etc. the next time something needs to be synced into it.

Preventing duplicate invoices, credits, expenses, or purchase orders

If you are transferring an in-progress project from a different system into Materio, you may want to enter historical invoices, credits, expenses, or purchase orders into Materio so that your project totals are accurate.

However, if those records have already synced from your old system into QuickBooks, you should use Materio's "Exclude from QuickBooks" feature to tell Materio not to sync duplicate copies of historical records into QuickBooks. You can learn more about that feature here.

Does the Materio sync work with QuickBooks projects?

Yes, with a small amount of manual setup. See: Syncing into QuickBooks Projects for instructions.

How can I control the account for each transaction?

To control which QuickBooks account is used for each synced transaction, follow the steps in this article: Mapping to your QuickBooks chart of Accounts.

What QuickBooks "Products and Services" will Materio create?

Materio creates a single QuickBooks product for each of our top-level categories, e.g. "Materio Products," "Materio Services," "Materio Billable Expenses," etc. We do not create a separate QuickBooks product for each individual item sold in each of your projects (each individual couch, each individual chair, etc.).

Does Materio sync transaction fees into QuickBooks?

Yes, Materio automatically syncs transaction fees and payment processing fees into QuickBooks, including:

  1. Client-covered processing fees on payments from clients

  2. Firm-covered processing fees on payments from clients

  3. Firm-covered transaction fees on payments made to vendors

Transaction fees are represented as one or more journal entries directly attached to the QuickBooks payment on which they were incurred. Learn more with this short video.

(Optional) To ensure your synced transaction fees are properly categorized, first go to the QuickBooks integration page, click "Manage settings", fill out the "Transaction fees" section, then click "Update accounts."

How can I defer revenue recognition in QuickBooks?

Materio offers four different billing options:

  • Retainers are synced as either a liability or negative A/R in QuickBooks

  • Deposits are synced as either a liability or negative A/R in QuickBooks

  • Invoices are synced as income in QuickBooks and trigger revenue recognition

  • Credits for invoices reverses revenue recognition in QuickBooks

Learn more about Materio's different billing options here.

Learn more about setting up liability vs. income accounts here.

Where do synced invoice payments land in QuickBooks?

Materio places all invoice payments received from clients into the "Undeposited Funds" account in QuickBooks (sometimes named "Payments to deposit").

QuickBooks will then auto-suggest matches between payments you've received and your bank transaction feed, based on payment amount and date. Learn more with this short video.

Can I exclude individual records from syncing to QuickBooks?

Yes, you can choose to exclude individual records from syncing into QuickBooks. Common reasons for this include:

  1. To avoid duplicates when transferring a project from another system into Materio

  2. To temporarily adjust reporting data in QuickBooks

  3. To fix any inconsistencies that arise between Materio and QuickBooks

You can learn more about this feature here.

How do I track general overhead and company-level finances?

Materio's QuickBooks integration is currently geared towards tracking finances at the project-level. To track general overhead or any transactions that happen at a company-wide level rather than on a specific project, enter and manage those transactions directly in QuickBooks.

Project-level: enter and manage in Materio (with auto sync to QuickBooks)

Company-level: enter and manage directly in QuickBooks (no sync)

For example, when you place a purchase order for a specific client's furniture, or when you invoice your client for that furniture, track those transactions in Materio and allow them to sync to QuickBooks automatically. But, when you do payroll or pay rent for your firm's office space, track those transactions directly in QuickBooks.

Which QuickBooks subscription tier do I need?

The QuickBooks integration works with QuickBooks Online Essentials or above tiers, including:

  1. Syncing invoices and invoice payments to QuickBooks.

  2. Syncing bills and bill payments to QuickBooks.

  3. Syncing expenses to QuickBooks.

  4. Syncing bank deposits to QuickBooks.

Additionally, if you are on QuickBooks Online Plus or above tiers, then Materio can also:

  1. Sync purchase orders to QuickBooks.

  2. Sync into QuickBooks projects.

Note that these two extra features are optional, and the integration works well without them.

Quick guide

Compatible: Essentials, Plus, & Advanced

Sync POs and Projects: Plus & Advanced

Not compatible: Simple Start & Desktop

Why does QBO say "placeholder" with a Materio sync?

In QuickBooks, a project (sub-customer) can be owned by only one client (customer). That's a different model from Materio, where a project can have multiple clients invited, and we have no concept of which client is "primary."

Suppose the first thing you sync from Materio is an invoice. In that case, Materio uses whichever client you've assigned to that invoice as "the primary client", and syncs that to QBO as the top-level customer, then nests the project underneath as a sub-customer.

However, if the first thing you sync from Materio is an Expense or PO, Materio doesn't know which client to use, so we create a "placeholder" top-level customer in QBO to own the project (QBO sub-customer).

You are free to rename that placeholder in QBO to whatever you choose. You might rename it to a couple's name or a person's name... whatever couple owns the home being renovated or whatever person is the "primary" client.

Does Materio integrate with Xero, NetSuite, or any other platforms?

The only accounting software supported is Quickbooks Online. We hope to integrate with other software in the future, but at this time, we're focused on creating a great experience with the software that most of our user base utilizes.

Does Materio integrate with QuickBooks Desktop?

Materio does not integrate with QuickBooks Desktop. Intuit, the parent company of QuickBooks, has stated that they will discontinue service for QuickBooks Desktop after May 31, 2024. We suggest migrating to QuickBooks Online before May 31, 2024, and we will assist with integrating Materio and QuickBooks Online.


Feedback, issues, or questions? Email us at hello@materio.co!

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