I hope this tutorial was helpful if you have any questions regarding Paypal transactions and QuickBooks you can send me an email me or book an appointment below. This is because it was recorded as a transfer and how you should be handling your expenses paid with Paypal. Once going from the credit card to Paypal, the other going from Paypal to Score. If I view the Profit and Loss Report you can see there’s only one $50 expense even though the transaction was recorded twice. Click the “Save and new” button to save the expense.
I now create the expense with a Payee of SCORE, Payment account of Paypal, and I add the $50 transaction in the education category. To do this I click the New button in the upper left hand corner then select Expense from the Vendor column. I don’t have my Paypal account connected to this QuickBooks file so I will manually enter the expense. I’m now going to change this transaction to a transfer as it’s being transferred from my Bank of America credit card into Paypal. I can see the transaction is back to be reviewed. I’ll now click on Banking in the left-hand menu and Banking again to get to that Online Banking page. I’m going to go back to the credit card’s register in Quickbooks and delete that $50 Score transaction.Ī warning pop-ups letting me know this transaction was downloaded from my bank’s records, double-checking that I actually want to delete the transaction, but also letting me know that the transaction will be back on the Online Banking page. Properly Handling a Paypal Transaction in QuickBooks But, the reason you want to do this is to make sure you’re not missing any expenses or revenue.Īnytime you have a bank account of any type you want to be able to reconcile that account and verify that ALL of your transactions are recorded and nothing is missing. This may seem like a lot of extra work and like you’re recording a transaction twice. When reconciling Paypal in Quickbooks you should log everything that you see under All Transactions in your Paypal account. If I view the Paypal register in Quickbooks I can see the balance is $22.26 but I don’t see the transaction from Score. It should look the same in QuickBooks but at the moment it looks like it went directly from my credit card to Score without Paypal being involved. There was a withdrawal from my credit card of $50 that went to Paypal and then from Paypal to Score.
QUICKBOOKS TUTORIAL YOUTUBE FULL
When I click on the plus sign I can see the full transaction.įrom this view we can see what actually happened. Now those two transactions have a plus sign to the left of the date. To find out I click on the Transaction Type drop down and switch from “Balance affecting” to “All transactions.” You should think of it like a checking account that has a balance of $22.26 within it.įrom the summary page you can see that balance of $22.26 in the upper left-hand corner.īut, their are two $50 transactions and the balance remains at $22.26. Most people don’t think of Paypal as a bank account, but it is. That balance of $22.26 is the amount of money I have in my Paypal account. I didn’t pay a fee and I have a balance of $22.26. In this view you can see that this purchase was from Score Assocation for $50. I want to show you a different view of this transaction which I’ll do by clicking on “Activity (including balance & fees).” I have two $50 example transactions at the top of my list. Within Paypal click Summary in the top menu and you’ll see a list of your recent transactions. Let’s take a look at the Paypal register in Paypal itself for more details. The problem with this method is that it’s not exactly what occurred. In many people’s QuickBooks accounts I’ll see these Paypal transactions entered with the Vendor/Customer stating who the money went to and the category being what the transaction was for. You can tell this was processed through Paypal from the Bank Details within the transaction. The payment was made with a Bank of America credit card but was processed through Paypal. In this example I’m using a $50 payment for training from a company called Score. You can also click on Banking in the left-hand navigation menu and select Banking. You can get to this two ways in your own account.įrom the main screen you can click on the bank account you’d like from the Bank Accounts box on the right side of the screen. We’ll start by looking at credit card transactions from a bank account. In this tutorial I’ll be using my Paypal account and a sample QuickBooks company file I use for teaching.
QUICKBOOKS TUTORIAL YOUTUBE HOW TO
In this tutorial I’m going to show you how to avoid some common mistakes people make when entering their Paypal transaction into QuickBooks Online.
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