![]() ![]() Choosing not to sync with QBO is the best option if you use your PayPal for sales only (not purchases), since you will see every deposit that PayPal makes into your bank. It is important to understand how YOUR PayPal works, as there are many different ways to set it up in QBO. Simply add the transaction to the register by selecting the expense account or COGS in the category field. The transfer to PayPal will appear in for example the spent column of the checking account For Review tab. If you have set up your PayPal to auto withdraw from your checking account or credit card, you will see this come into QBO in the banking review tab. You must choose an income account and the expense or COGS account for your journal entry and record the exact amount of the purchase against sales.įunding PayPal for purchases from an account in QBO: ![]() Therefore, the expense will need to be entered in QBO with a journal If you do nothing, then you are not recording some income and some expenses. The expense in the PayPal account will not appear in QBO since it is not synced. Using funds in the PayPal account for purchases: These fees need to be added back to an income account with a journal entry and expensed to a merchant service fees expense account. You can calculate the monthly fees by running a month-end report in PayPal and finding the total fees for the month. Therefore, every month-end, the fees charged in the PayPal account need to be credited with a journal to the sales account and debited to an expense fee account. Very important: the fee will be excluded from the deposit. Simply add the transaction to an income account The deposit will appear in the account you transferred it to from PayPal, for example in the checking account received column in the For Review tab. When money is transferred from payroll to your checking account: When PayPal is only used to receive payments and the payments are transferred regularly or daily to the checking account, it is not necessary to sync it with QBO since the PayPal money is transferred to your bank account and is accounted for as sales. (Think of PayPal like a bank – deposits and expenses.) It then shows up just like a bank does in the banking tab. When PayPal is used as a bank to receive payments as well as purchases, it is usually best to sync PayPal with QBO. ![]()
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