Square Integration
Square counts the finished items you sell. Stocksmith tracks the materials behind them, what each unit actually cost to produce, and pushes accurate stock levels back to Square — so your counts stay right whether you sold it over the counter or online.
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| Item | On hand | Status |
|---|---|---|
| Lavender Body Butter 200ml | 412 | In stock |
| Amber glass jar, 200ml | 1,240 | In stock |
| Vitamin C Serum 30ml | 38 | Low |
| Shea butter, refined | 6.2 kg | In stock |
Square tracks stock counts for the finished items you sell, at each location. It does not track the raw materials or components those items are made from.
For a business that buys finished goods and resells them, that's usually enough — one unit in, one unit out. For a business that makes what it sells, it's only half the picture. Square knows you sold twelve candles. It has no idea that took 4.2 kg of wax, twelve jars, twelve wicks and a fragrance oil you last bought at a different price.
So the counts that matter most are the ones Square can't hold. You can be fully accurate on finished stock and still get caught out by a material you've quietly run down to nothing — because the shortage doesn't show up anywhere until the batch is due to run.
Stocksmith sits behind Square and holds that layer: materials, components, sub-assemblies, and the bill of materials that turns them into something sellable. Square stays your point of sale. Stocksmith becomes the record of what you own and what it cost.
Connect your Square account once. From then on it runs in both directions — sales come in, accurate stock levels go back out.
Your Square items come across as products, and orders follow automatically. In-person sales and Square Online orders arrive the same way, so a pop-up on Saturday and a website order on Sunday both land in one queue.
Finished goods stock decrements. If you manufactured the product, Stocksmith also draws down every raw material and component it consumed — cascading through as many levels as your recipe has.
Finish a batch and Stocksmith writes the updated counts back to Square against the location you nominate. You can let it run automatically or review a draft of the changes before they go live.
Costing and margins
Square reports your revenue and its fees, not cost of goods sold for products you manufacture — it holds no record of what your materials cost.
This is the gap people hit at tax time. Square will tell you exactly what you sold and exactly what it charged you to process the payment. Neither of those is COGS. For a manufacturer, COGS is materials plus direct labour plus the overhead you allocated to the run — and it has to come from your production records, which live outside Square entirely.
Stocksmith calculates it from your bills of materials, using a weighted-average material cost drawn from what you actually paid across your purchase history. Not a list price, not a figure you set once and forgot. When a Square order imports, it arrives already carrying that cost, so your margin per sale is a real number rather than a guess.
That flows through to a proper cost of goods sold figure at period end, and an inventory valuation you can hand to an accountant. If you keep your books in QuickBooks Online, Stocksmith pushes COGS and valuation journals across — see Stocksmith and QuickBooks.
"Being able to manage our inventory and accurately assess our cost of goods has allowed us to scale our business with confidence."
Build a recipe with as many levels as the product needs — raw materials into components, components into finished goods. Costs roll up the whole way.
Every imported Square order carries a cost calculated from your actual material purchases. Set that against Square's fees and you have a true margin.
Set thresholds on the materials your production actually depends on, and get warned before a shortage stops a batch — not after.
Opening and closing inventory across materials and finished goods, valued at weighted-average cost — generated from data you already captured.
Running Square on its own
With Stocksmith + Square
In person and online
Square is often the channel that doesn't fit the system. The online store is tidy, the wholesale orders are tidy, and then there's a trade show or a retail counter where stock walks out the door in a way nothing else records. Those units came out of the same materials pool as everything else.
Stocksmith treats Square as one channel among several. Connect it alongside Shopify, Etsy, Faire and WooCommerce, and every order — counter, website or wholesale — draws down the same stock. There's more on the pattern in our guide to multi-channel inventory management.
Square is also one of the platforms Stocksmith can write back to, so this isn't one-directional. Stock push-back is available for Square, Shopify, WooCommerce, Etsy and Faire. If you run more than one Square location, you choose which one the counts are pushed against.
Order #1043 · 3 items
2 min ago
Wholesale · 24 units
18 min ago
Order 114-220 · 1 item
1 hr ago
You can connect Square on any paid plan, starting at $20/month billed annually on Pro ($24/month billed monthly). What changes with the plan is how often orders come in and whether Stocksmith can push stock back.
Square tracks the finished items you sell, not the materials they're made from. If you manufacture your products, that means Square can't tell you what a unit cost to produce, when a raw material is about to run out, or what your inventory is worth at period end. Stocksmith holds that layer and feeds Square accurate counts, so you keep Square as your point of sale and gain the production record behind it.
Yes — Square is one of the platforms Stocksmith writes stock levels back to, alongside Shopify, WooCommerce, Etsy and Faire. When you complete a batch, the new counts are sent to Square against the location you nominate. Stock Push requires the Indie plan or above, where you review the changes before they go live; on Business and Growth it can run automatically without review.
Square doesn't produce one for manufactured products, because it has no record of your material costs — its reports cover revenue and payment fees. In Stocksmith, COGS is calculated from your bills of materials at weighted-average material cost, so every imported Square order arrives already costed. At period end you get a COGS figure and an inventory valuation without reconstructing anything from supplier invoices.
Yes. Both arrive through the same Square connection — in-person sales and Square Online orders import together and draw down the same inventory. That matters most if you sell the same products at a retail counter or trade show and on your website, because it's the one situation where two channels can quietly commit the same physical stock.
You authorise Stocksmith from your Square account and the two are linked — no API keys to manage and no developer needed. Your Square items import as products so you're not re-entering a catalogue, and orders follow from there. If you have more than one Square location, you pick which one stock levels are pushed against.
Yes, and it's one of the main reasons product businesses use it. Connect Square alongside Shopify, Amazon, Etsy, Faire, WooCommerce, Wix and Squarespace. All of them draw from one inventory pool, so a busy day at the counter and a wholesale order on Faire are visibly competing for the same materials rather than each looking fine in isolation.
Yes. Square brings the sales in, Stocksmith works out what they cost you to make, and QuickBooks Online receives the COGS and inventory valuation journals. That's the combination that closes the usual gap, where the accounting is right about revenue and silent about production cost. There's more detail on the Stocksmith and QuickBooks page.
Materials, components and finished goods tracked in one place.
Real cost of goods per order, calculated from your bills of materials.
Multi-level recipes with costs that roll up through every level.
Push COGS and inventory valuation journals to QuickBooks Online.
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