Using your PayPal as a Bank Account

paypal as a bank account

Using your PayPal as a Bank Account

  It is not a piece of news that PayPal is now much more than just a payment processor, for some people it can replace actual Bank Account.

  Usually, in order to account for PayPal transactions, you are to create a bank type account for them in your QuickBooks and enter your PayPal sales and expenses transactions manually. Another option would be to export all PayPal transactions to excel sheets and use importing apps to get them to QuickBooks faster. However, both of those options require a lot of manual work to keep your PayPal data accurate in QuickBooks Online. There is a better option for this, which will save tons of your time as the whole process will be totally automated. In this guide, you will learn how to account for your PayPal transactions automatically with the help of Business Payments app in your QuickBooks Online.

  Here are simple steps on how to account for all your PayPal transactions in QuickBooks Online automatically:

  1. Open your QuickBooks and find Business Payments app under Apps tab.
  2. Connect Business Payments app to your QuickBooks Online account.
  3. Connect your PayPal to Business Payments and customize the flow of synchronization.
  4. Synchronize your PayPal Sales and Expense transactions and fees to PayPal Bank Account in your QuickBooks Chart of Accounts.
  5. Reconcile your PayPal Bank Account using PayPal ->Reports-> Financial Summary report. It will give you ending balance and ending date for reconciliation.

   Here is an example of the setting up of the app, which is very simple and can be edited at any time.

UI of Business Payments app that Sync Stripe, Square, PayPal with QuickBooks Online

  Using this simple app, all your PayPal transactions will be properly accounted for in QuickBooks Online, and you will be able to reconcile your online transactions time efficiently. Business Payments will be able to properly account for both sales and expense PayPal transactions including processing fees, you will be able to run reports and check your PayPal Bank Account register, which will actually reflect all the money flows from your PayPal. Start saving your time now!

Alexandra Kozyritskaya

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