I've been looking for a while but have no idea under what category I should file my Paypal fees ?
I receive £90 and then have a separate charge of £3.26 as the fee. It automatically categorizes this under Professional fees, is this correct?
For Paypal fees you can create a new chart of account for Paypal fees.
To do this go to accounting> chart of accounts> new> expenses> detail type you can use the one you mentioned or bank charges (as this is for fees you pay to financial institutions)>name-name it Paypal fees>save
That way you can when when you run a report on expenses see what you are spending on Paypal fees
Any questions on this just reply back to this post.
Hey Emily, I unfortunately don't have that option in Quickbooks self employed. Is there another way I can do that or some other way I can categorise the fees correctly? Currently they're under professional fees, does that work?
Also I have the same kind of question in regards to Paypal but with payments from other currencies. Currently I have it showing up like this:
Payment from Customer : + 1000 CAD
Conversion fee - Currency Conversion (debit) - To British Pound :-CA$955.70
Currency Conversion (credit) - From Canadian Dollar - +£552.04
How do I go about categorizing this correctly? I have currently got the +552.04 as credit to my account as that is the actual money that went in, but I somehow need to minus the fees I've been charged. Do I need to do this manually?
You should be categorising Paypal fees under Other financial Charges, we have enclosed a link.
You will also have to record multi-currency payments manually in GBP.