Using FlexBooks with Mindbody Payments

Overview

This guide explains how to set up and use FlexBooks with Mindbody Payments, Mindbody's native payment processing service powered by Stripe. If you're transitioning from TSYS (Transfirst) or another payment processor to Mindbody Payments, this article will walk you through the necessary accounting adjustments.

What is Mindbody Payments?

Mindbody Payments is Mindbody's own payment processing service which allows you to collect payments for your services sold through the Mindbody app, online store, or at your business location. Unlike some other processors, Mindbody Payments deducts all processing fees before depositing funds to your bank account. You can learn more about it at the Mindbody Payments FAQ. 

What are Mindbody Payments' Payouts?

When the money collected from your customers is deposited to your bank account in a lump sum – this is called a "Payout." If you previously used Transfirst, these were referred to as "Batch Deposits."

Why You Need a Different Approach for Mindbody Payments

When using Mindbody Payments, you'll notice that the amount deposited to your bank account is the net amount (total charges minus processing fees). With FlexBooks, we recommend using a Clearing Account method rather than the direct matching method you may have used with other processors.

Setting Up FlexBooks with Mindbody Payments: 3 Simple Steps

Step 1: Set Up a Clearing Account in FlexBooks

Contact FlexBooks support to request setup of a clearing account. We'll reconfigure your FlexBooks account to automatically send all credit card transactions to an Other Current Asset account called "Credit Card Processor."

Step 2: From your Bank Feed, Record Your MindBody Payments Payouts as a Transfer

When Mindbody Payments deposits funds to your bank account, process them as follows:

  1. From your QBO Bank Feed, click on your Mindbody Payments Payout
  2. Select "Record as Transfer"
  3. Select "Credit Card Processor" from the "Transferred from" dropdown menu
  4. Click "Add"

Pro Tip: Once familiar with this process, create a rule in QBO to automatically "Record as Transfer" all Mindbody Payments Payouts to the "Credit Card Processor" account.

Step 3: Account for Processing Fees Monthly

At the end of each month:

  1. Access MindBody's Payouts Report (NOTE: only the MBO site owner account will be able to view and access this report):
    • In MBO, click your name at the top right corner
    • Select "Payments"
    • Choose "Reports" on the left side
    • Select your date range
    • Click "View" then "Export"
    • Open the .csv file
    • Add up all numbers in the "Fees" column

  1. Create an expense in QBO:
    • Click the "+ New" button
    • Select "Expense"
    • For Payee, select "MindBody Payments" (create if needed)
    • For Payment account, select "Credit Card Processor"
    • For Category, select "MindBody Payments Fees" (if it doesn't exist, create one using Account Type: Expenses, Detail Type: Bank Charges)
    • Enter the total amount of fees calculated from the report

How the Clearing Account Works: An Example

  1. You charge $120 in credit card payments
  2. FlexBooks enters a Sales Receipt which increases the clearing account by $120 (Balance: $120)
  3. Mindbody Payments deposits $100 in your bank account ($120 minus $20 in fees)
  4. QBO syncs in a $100 deposit through the bank feed
  5. You transfer that deposit to the clearing account, reducing it by $100 (Balance: $20)
  6. You create a monthly expense for $20 in fees, reducing the clearing account by $20 (Balance: $0)

Resource: Here is an in-depth YouTube tutorial on Clearing Accounts and how they're used: What is a clearing account and when and how would we use it?

Transitioning from TSYS to Mindbody Payments

Determine Your Transition Date

The first step in transitioning is to identify when the switch to Mindbody Payments will occur (or if it has already happened):

  1. If you've already transitioned to Mindbody Payments:
    • Contact FlexBooks support right away
    • We'll switch your account to use the clearing account method
    • You'll then "Transfer" all existing MindBody Payments Payouts to the new clearing account
    • We'll help you calculate and account for any accumulated fees
  2. If your transition is scheduled for a future date:
    • Let FlexBooks support know the exact date of your planned transition
    • We'll configure your account to switch to the clearing account method on that specific date
    • This ensures a smooth transition with no disruption to your accounting records
    • After the transition date, you'll start using the new process described above

What to Watch For During Transition

  • Your first few deposits from Mindbody Payments may look different from your TSYS deposits
  • The net amount deposited will be lower (payment total minus fees)
  • The description in your bank feed will change from "Tsys Transfirst" to "MINDBODY, Inc."

How to Identify a Mindbody Payments Payout vs. a Transfirst Batch Deposit

In QBO, look at your deposits' Bank Details:

  • If you see "ORIG CO NAME: MINDBODY, Inc." it's a Mindbody Payments Payout
  • If you see "Tsys Transfirst", it's a a Transfirst Batch Deposit

Need Help?

If you need assistance setting up the clearing account or have questions about using FlexBooks with Mindbody Payments, please contact our support team. We're happy to help guide you through the transition process.

We offer several personalized support options to make your transition as smooth as possible:

  • We'd be happy to enter your first few fees transactions for you
  • We can record a video tutorial specifically for your business setup
  • We offer screenshare support sessions to walk you through the process step by step

Just let us know what would be most helpful for your team, and we'll be glad to accommodate your needs.

Still need help? Contact Us Contact Us

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