Connecting Progress Payments to QuickBooks

This article explains how Bolster posts progress payments to QuickBooks, including how estimates, invoices, payments, fees, and payouts flow and where they land in your Chart of Accounts.

👉 Watch the video walkthrough for a detailed explanation of this process.

Overview: End-to-End Flow

Bolster (Estimate & Payment) → QuickBooks (Paid Invoice & Accounts) → Payout (Business → External Bank)

1. Create & approve items on a Bolster estimate

2. Send approved items to billing in Bolster

3. Customer pays in Bolster

4. Bolster syncs a paid invoice to QuickBooks (customer is created if needed)

5. Revenue, fees, and taxes are posted to dedicated QuickBooks accounts

6. Payout bundles multiple payments; funds move from the Business account to an External bank account

1) Create and Approve an Estimate in Bolster

• In Bolster, create an estimate (example: two items at $100 each, no discounts/taxes for clarity).

• As work progresses, approve items on a rolling basis and send to billing.

  • Only the approved items are included in the next payment request.

At this point, QuickBooks does not yet have an invoice. Sync happens after a payment is made in Bolster.

2) Customer Pays in Bolster

• Your customer completes the payment in Bolster.

• Status moves to Processing and then Paid.

• The payment includes the approved items (e.g., Item 1 and Item 2).

3) Automatic Sync to QuickBooks (Paid Invoice)

After Bolster marks the payment Paid:

• Bolster creates a customer in QuickBooks (if one doesn’t exist) and syncs an invoice marked Paid.

• The synced QuickBooks invoice includes:

  • Line items (e.g., Item 1 and Item 2 at $100 each)

  • An Invoice Service Fee (credit card/processing fee), when applicable

Where to see it in QuickBooks:

• Sales → Invoices: The invoice appears as Paid.

• Sales → Customers: The Customer record is created/updated, with the invoice and payment in the Transaction List.

4) How Bolster Maps to the QuickBooks Chart of Accounts

Bolster sets up and uses dedicated accounts in QuickBooks to keep your books clean and traceable:

• Bolster Revenue (Income)
  Stores the invoice line items (e.g., the $200 from two $100 items).

• Commission and Fee (Expense)
  Holds processing fees (e.g., credit card fees shown on the invoice as “invoice service fee”).

• Bolster Tax (Liability or as configured)
  Populated only if taxes are applied on the Bolster side.

• Business Account (Bank)
  A bank-type account that receives funds from Bolster payouts. Bolster adds a memo for source clarity.

• External Bank Account (Bank)
  Represents the actual destination bank for payouts. After transfer, funds leave the Business account and appear here.

• Undeposited Funds
  Used temporarily during posting; after the flow completes, this typically nets to $0 for the transaction.

5) Reporting & Reconciliation in QuickBooks

• Reports → General Ledger confirms alignment:

  • Undeposited Funds: nets to 0 once moved

  • Bolster Revenue: shows the item revenue (e.g., $200)

  • Commission and Fee: accumulates processing fees

  • Business Account: reflects the incoming payout

  • External Bank Account: shows the transfer out of the Business account

6) Tracking Payments & Payouts in Bolster

• Payments tab: Shows each payment’s net amount (e.g., $198 after a $2 processing fee), and whether it was synced to QuickBooks.

  • Payment details include the Batch Payout ID when a payout has occurred.

  • You can also view the invoice tied to the payment for client details.

• Payouts tab: Groups multiple payments into a single payout.

  • Click View Payments to see the exact payments included (e.g., 3 payments bundled).

  • This helps you trace the flow of funds from individual payments → payout batch.

7) Payout & Transfers (Cash Movement)

When Bolster issues a payout:

1. Funds move into the QuickBooks Business Account (Bank).

2. Bolster records a transfer from the Business Account to the External Bank Account.

3. The Business Account balance for that payout returns to $0, and the funds appear in the External Bank Account.

Example Numbers (from the demo)

• Items: $100 + $100 = $200 revenue

• Processing fee posted to Commission and Fee

• Net funds shown in Bolster Payments as $198 (example)

• QuickBooks invoice is Paid, customer created, revenue/fees posted to the mapped accounts

Key Takeaways

• Estimates and approvals happen in Bolster.

• Invoices in QuickBooks are created only after a Bolster payment is made and are synced as Paid.

• Revenue, fees, and (if applicable) taxes are auto-categorized to dedicated accounts.

• Payouts bundle payments and move funds from a QuickBooks Business bank account to an External bank account, preserving a clear money trail.