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What category do I file Paypal Fees under?

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?

3 REPLIES 3
QuickBooks Team

Re: What category do I file Paypal Fees under?

Hello TheDesignHero

 

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.

 

 

Thanks

 

Emma

 

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Re: What category do I file Paypal Fees under?

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?

QuickBooks Team

Re: What category do I file Paypal Fees under?

Hi TheDesginHero

 

You should be categorising Paypal fees under Other financial Charges, we have enclosed a link.

 

https://quickbooks.intuit.com/community/Taxes-and-Year-End/About-SA103F-Categories/td-p/239287

 

You will also have to record multi-currency payments manually in GBP.