How to Reconcile Sezzle Payouts
If you’re an accountant or bookkeeper working with ecommerce sellers, you’ve likely landed here because one of your clients is using (or is interested in using) Sezzle as a payment option on their online store.
In this guide, we’ll share what accountants and bookkeepers need to know about Sezzle so you can accurately reconcile each month.
This guide is brought to you by the Financly Ecommerce Training Academy, an exclusive community designed for accountants and bookkeepers to learn everything they need to know about ecommerce bookkeeping – from payment gateway reconciliation, to inventory accounting, and more.
Watch: How to Reconcile Sezzle
Watch Teresa Slack, CEO and Co-Founder of Financly, walk through what accounting and bookkeeping professionals need to know about Sezzle and how to reconcile Sezzle payouts in QuickBooks Online.
What is Sezzle?
Sezzle is a buy-now-pay-later (BNPL) platform that lets shoppers split a purchase into four interest-free installments (“Pay-in-4”) or other short-term plans.
Merchants receive the full order value upfront (minus processing fees) while Sezzle takes on fraud and repayment risk, boosting conversion rates and average order value.
In 2025, Sezzle rolled out new consumer features – “On-Demand” single-use virtual cards, AI-powered price comparison, and auto-couponing inside its mobile app – to widen acceptance beyond partnered stores and increase engagement.
What Accountants/Bookkeepers Need to Know About Sezzle
For accountants and bookkeepers who are unfamiliar with Sezzle, here are some important callouts for accurate and easy bookkeeping.
Key area | Details |
Funds are batched into “settlements” and usually reach the merchant’s bank 3 business days after the order date. | |
• % of each order + small per-transaction fee • $15 monthly minimum if volume < US $300 • Refund fee. | |
Risk & chargebacks | Sezzle pays the merchant in full and covers fraud and chargeback losses, provided the order is properly fulfilled. |
Integrations | A2X can automate posting of gross sales and fees to QBO/Xero. Important note: A2X does not connect directly to Sezzle; it imports Sezzle-paid orders from Shopify as gross amounts only (no fees or net payouts) – so you must use a Sezzle clearing account and post the fees separately to reconcile the deposits. |
Clearing account | Because deposits arrive net of fees and not in the same batches as sales, route all A2X (or manual) journal entries to a “Sezzle Clearing” asset account. |
Multi-currency | Sezzle supports multiple currencies; integration tools can post a separate fee journal per currency. |
Step-by-Step: How to Reconcile Sezzle
Before you get started:
- This process assumes that you are using A2X.
- Make sure you have a Sezzle Clearing Account set up in QuickBooks Online, and that all transactions are mapped to the appropriate accounts via A2X.
Step | Why / Tips | |
1 | Download the Sezzle settlements report • Log in to Sezzle → Settlements. • Filter the date range you’re closing (e.g., 1 – 30 Apr 2025). • Click Download transaction data → CSV. • Download both the Payouts and Refunds CSVs so you can match refunds and reserve holds. | This report gives you gross sales, fees, & net payout for each settlement. Save it to your month-end folder. |
2 | Confirm A2X entries have posted • In A2X, wait for all settlements for the period to arrive. • Send them to QBO (daily/weekly/monthly – whatever cadence you chose). | A2X journals post gross Sezzle sales, taxes, refunds, etc. to Sezzle Clearing. |
3 | Set (or verify) a bank-feed rule Banking → Rules: create a rule that maps every Sezzle bank deposit description (“Sezzle*” etc.) to Transfer → Sezzle Clearing. | This auto-matches the net deposit to the clearing account. |
4 | Record Sezzle processing fees • Add an Expense (or Journal Entry) dated the deposit date. • Account = “Merchant fees” (or similar). • Payment account = Sezzle Clearing. • Amount = fee column total from the report. | Using the clearing account as the “bank” side removes fees from the balance. |
5 | Reconcile the Sezzle Clearing account Accounting → Reconcile. • Account = Sezzle Clearing. • Beginning balance should already be 0. • Ending balance = 0. • Check-off: a) all A2X journal entries (gross sales) b) all bank-feed transfers (net payouts) c) fee expenses you just entered A small debit balance at month-end usually equals orders shipped on the last day that will fund next month – verify it clears in the next payout. | If the difference ≠ 0, compare: • Column J (gross) of the CSV = sum of A2X debits. • Column L (fees) = fee expenses. • Column N (net) = bank transfers. Missing or mis-dated items usually explain variances. |
6 | File your evidence Save the Sezzle CSV + QBO reconciliation report to your month-end folder. | Protects you if order edits or back-dated changes occur later. |
7 | Repeat monthly (or more often for high volume). | Staying current avoids year-end clean-ups. |
Sezzle Bookkeeping Tips
- Create a Sezzle Clearing account (Current Asset)
Map your integration tool so every Sezzle settlement posts gross sales, refunds, and taxes to this account. - Automate bank-feed rules
When a “Sezzle*” deposit hits the bank, auto-classify it as a Transfer → Sezzle Clearing. - Record fees promptly
Post a monthly (or per-payout) Expense dated the settlement day, crediting Sezzle Clearing. Base the amount on the “Fees” column in the CSV. - Reconcile monthly
In QBO/Xero, reconcile Sezzle Clearing to $0 ending balance – all A2X journals, transfers, and fee expenses should tick off. - Save records
Store the CSV downloads and the reconciliation PDF each month; they’re vital when order edits or retro-refunds hit later. - Watch month-end cut-off
31 Dec sales paid with Sezzle will probably fund in early January – expect an open balance that reverses next month.
Troubleshooting Common Errors
Clearing account not clearing? Here are some common errors (and how to fix them).
Potential error: Clearing account off by the exact amount of Sezzle fees
Likely cause: Fees not recorded (or mis-dated)
Fix: Post the missing fee expense to Sezzle Clearing, using the report total.
Potential error: Small balance remains after reconcile
Likely cause: Timing difference – end-of-month sales funded next month
Fix: Verify that the open items clear in the following period; if so, no action needed.
Potential error: Negative or smaller-than-expected payout
Likely cause: $15 minimum-volume fee or refund exceeded reserve balance
Fix: Check Sezzle dashboard > Settlements and review negative adjustments; record fee/refund entry.
Potential error: Duplicate transfer in bank feed
Likely cause: Bank rule matched twice
Fix: Delete the duplicate transfer and re-review your rule conditions.
Potential error: A2X totals don’t match Sezzle CSV
Likely cause: Integration delay or order edits after posting
Fix: Refresh A2X fetch, look for adjustment journals; include them in the next reconcile.
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