Service Titan and How It Integrates with QBO

Businesses using ServiceTitan must ensure that general ledger accounts, business units, and price books are correctly mapped to QuickBooks Online. For service businesses, choosing the right software to manage operations is critical. Popular options include HouseCall Pro, ServiceTitan, Jobber, ServiceMate, and smaller platforms like Sera and Customer Factor. These tools streamline scheduling, dispatching, and invoicing, making them essential for daily operations.

A key factor in selecting a service management platform is its integration with accounting software. QuickBooks Online (QBO) is widely used for small to mid-sized businesses, providing cloud-based access to financial data. While most service platforms integrate with QuickBooks Online, the ease and effectiveness of these integrations vary.

Integration with QuickBooks Online can be complex for ServiceTitan users. Unlike other platforms with instant syncing, ServiceTitan uses an older system designed initially for QuickBooks Desktop. A lack of instant syncing can result in syncing delays, duplicate transactions, and setup complications. Proper configuration is critical to avoid financial discrepancies.

The Importance of Proper Setup

ServiceTitan’s general ledger (GL) accounts must align precisely with the account chart in QuickBooks Online. Any mismatch—such as incorrect account names—can cause integration failures and reporting errors. Key accounts to include are:

• Bank accounts (deposits and payments)
• Income accounts (revenue tracking)
• Accounts receivable (customer payments)
• Accounts payable (if using ServiceTitan for A/P)
• Undeposited funds (holding funds before bank deposits)
• Material expenses (if tracking A/P through ServiceTitan)

Another critical setup area is business units in ServiceTitan, which correlate with class tracking in QuickBooks Online. Class tracking allows businesses to categorize financial data by different divisions or services, making it easier to analyze profitability. A company that provides HVAC and plumbing services can use class tracking. This helps them separate income and expenses for each department.

To ensure proper integration, each business unit in ServiceTitan must connect to the client’s QuickBooks Online account. Each unit should also match a class in ServiceTitan to a class in QuickBooks Online. Any future changes in QuickBooks must also be updated in ServiceTitan to prevent syncing issues and misclassified transactions.

Using Sub-Accounts in ServiceTitan

ServiceTitan supports sub-accounts, similar to QuickBooks. These are useful when business owners need a detailed breakdown of financial data. To format them correctly, the parent and sub-account must be separated by a colon (:). For example, if ‘Service Income’ is a sub-account of ‘Sales’ in QuickBooks Online, it should be formatted as ‘Sales: Service Income’ in ServiceTitan.

Why Setup Matters

If ServiceTitan’s general ledger accounts or business units don’t match QuickBooks Online, invoices and payments won’t export. ServiceTitan does not allow unresolved errors to be pushed into QuickBooks Online, meaning failed syncs must be corrected before transactions can be transferred.

For example, if an income account doesn’t align, Service Titan will block the export until the issue is resolved. Export blocking can delay financial reporting and require manual adjustments. Accurately setting up ServiceTitan and QuickBooks Online prevents syncing failures, minimizes disruptions, and ensures accurate financial records.

Setting up the Price Book in ServiceTitan

When setting up the price book in ServiceTitan, income accounts must be mapped from the general ledger already established. Each mapped income account must exist in QuickBooks Online and match strictly between both platforms.

An export error will occur if a mapped income account does not exist in QuickBooks Online. This error must be corrected before attempting another export. Otherwise, invoices will not be transferred to QuickBooks Online. Unresolved export issues can lead to inaccurate financial records and require additional troubleshooting.

Day-to-Day Operations with ServiceTitan

Unlike HouseCall Pro, ServiceTitan does not automatically sync with QuickBooks Online. Instead, it relies on an export-based system that requires manual input. Every step, from creating estimates to recording payments, must be manually completed before transactions can be transferred into QuickBooks Online.

For transactions to sync correctly, users must follow three essential steps: batching, posting, and exporting. These steps ensure financial data transfers accurately without missing or duplicated information, preventing reporting errors and accounting discrepancies.

• Batching groups invoices or payments before export. The timing of batching depends on the business’s financial preferences and workflow. Some companies prefer to batch transactions daily, while others batch weekly or semi-weekly.
• Before batching, invoices must be reviewed to ensure they are final. Once an invoice is exported from ServiceTitan, changes cannot be made directly in the system.
• Posting occurs when a batch is marked as ready for export. This step is helpful when accountants or bookkeepers assist with financial transactions. Posting signals that the batch has been reviewed and verified and is ready for transfer into QuickBooks Online. If modifications are needed, the batch must be unposted before making adjustments.
• Exporting is the final step in the process. A posted batch that has been thoroughly reviewed is pushed into QuickBooks Online. Once exported, no further changes can be made in ServiceTitan. If an error or adjustment is required, an adjustment invoice must be created within ServiceTitan.

Adjustment invoices allow businesses to correct exported invoices by refunding payments, voiding transactions, or modifying previously submitted records. These adjustments ensure accurate financial reporting and prevent discrepancies between ServiceTitan and QuickBooks Online.

By managing each step of the export process, businesses can reduce errors. This helps keep financial records accurate and ensures smooth accounting operations. Proper setup and adherence to best practices prevent integration issues and provide better financial control.

Negative Amounts on the Accounts Receivable Report?

Negative amounts on accounts receivable reports in ServiceTitan typically occur for two main reasons. The first reason involves adjustment invoices used to correct already exported invoices. When an adjustment invoice is created in ServiceTitan, it acts as a credit memo.

This creates a negative amount on the accounts receivable report after exporting to QuickBooks Online. Adjustment invoices ensure accurate records but can sometimes confuse.

The second reason negative amounts appear is when payments are exported before invoices. Many home service professionals delay exporting invoices until jobs are fully completed. However, they may export payments regularly for cash flow tracking.

This process results in payments appearing in QuickBooks Online without corresponding invoices. Since QuickBooks requires an invoice to apply for payments, these unmatched payments create negative amounts.

One major factor contributing to negative accounts receivable balances is ServiceTitan’s credit card processor. Many home service professionals using ServiceTitan’s processor (TSYS) have auto-batching enabled.

Auto-batching processes credit card payments automatically without manual approval. These batches are often posted and exported before the associated jobs or invoices are completed. When this happens, payments appear in QuickBooks Online without corresponding invoices. This timing mismatch can create negative amounts on the accounts receivable report.

Invoices and payments should be exported together when possible to prevent these issues. If invoices must be delayed, ensure proper payment tracking. Regular auditing between ServiceTitan and QuickBooks Online helps maintain accurate financial records.

Reports in Service Titan

ServiceTitan offers various reports in its reporting section to help businesses track financial and operational data. Two commonly used reports are the TSYS Settlement Report and Pending Errors Report. Additionally, ServiceTitan provides multiple revenue and operating reports for detailed insights. Today, we will focus on understanding the TSYS Settlement and Pending Errors reports.

The TSYS Settlement Report helps businesses create accurate credit card payment deposits in QuickBooks Online. It details which credit card transactions were included in a specific deposit. This report ensures that businesses match deposits correctly and maintain accurate financial records.

The Pending Errors Report assists in identifying issues preventing a batch from exporting successfully. When an error occurs during export, referring to the Pending Errors Report helps locate and resolve the problem. Reviewing this report ensures smooth financial data transfers between ServiceTitan and QuickBooks Online.

Conclusion:

Proper integration between ServiceTitan and QuickBooks Online is crucial for maintaining accurate financial records and avoiding costly errors. Businesses using ServiceTitan must ensure that general ledger accounts, business units, and price books are correctly mapped to QuickBooks Online.

Additionally, following best practices for batching, posting, and exporting transactions minimizes the risk of reporting errors. Carefully managing invoice and payment exports can prevent negative accounts receivable balances.

Regular audits and ServiceTitan reports, like the TSYS Settlement Report and Pending Errors Report, help businesses track financial data. By setting up ServiceTitan correctly and maintaining disciplined accounting practices, businesses can streamline operations, improve cash flow tracking, and avoid financial discrepancies.

Check out our youtube video Things to Consider when Integrating Service Titan with QuickBooks with James to give you a first hand recap.If you are still determining which plan works best for you or need additional help or have any questions, Waterford Business Solutions is happy to help. Feel free to call us at 864-351-0852 or email us at Info@WaterfordBusiness.com.