how do I record the cash in bank and PayPal

Hello, cpandy. 

I hope you're doing well. I'm here to discuss some details on how you can process the funds from your Stripe and PayPal payments. 

If you haven't already done it yet, create an invoice for the subscription fees to record your sales.

Then, since you have your bank account connected in QuickBooks, you would simply want to match those pending transactions in the Banking page.

Those transactions are most likely invoice payments, so you would want to match them with the open invoices to mark them as paid. 

This article will also help you with the process: Categorize and match online bank transactions in QuickBooks Online.

Do you also have your PayPal account connected in QuickBooks? The process is similar when recording your subscription sales. 

If you don't have it connected, just make sure to add your PayPal account on the Deposit to field when receiving payments manually:

1. Click the + New button, then select Receive payment. 
2. Select a customer under the Customer field. 
3. Set the Payment date, Payment method, and Reference no. if needed.
4. Select your PayPal account from the Deposit to drop-down menu. 
5. Check the invoice under Outstanding Transactions.
6. Hit Save and close. 

Creating a single invoice with a lump sum amount could work. Since you have a subscription-based business, tracking customers with overdue or unpaid balances might be hard to do. 

Unless you're tracking your customers outside QuickBooks (through Stripe or other third-party programs), then a single invoice with the final sales figure can work.

Creating two invoices (one for the Stripe payments and another for PayPal) can also work in this case. 

Though, you might have to skip the adding or matching process for the connected bank account (since those downloaded transactions do not come in as a lump sum amount). 

If you're ready to check your cash flow on both PayPal and your bank account, you can run reports in QuickBooks.

This article will help you familiarize the Reports feature in the program: Run reports in QuickBooks Online.

If you have more questions in recording your sales and deposits, do let me know the details in your reply. I'll also lend a hand if you have any other concerns on some areas in QuickBooks. I'll see you again soon. 

Hi @jamespaul , thank you for your sharing. Let me share a little bit more on our situation.

We have our own store and have it connect with Paypal and Stripe for payment receivable by our clients.For all the sales process, refund..etc we managed it through our store and we have a 3rd party system which we used it to track the monthly revenue.

Having said that, we aren't using QB for creating invoice and have it connect with our bank / PayPal for payment matching purpose.

What we intent to use QB is for our financial tracking purpose.

1. We will create an invoice (as you mentioned) after we have finalized the monthly revenue. Say the invoice description will be "Jan 2022 Sales Revenue" with the final figure.

2. We have linked the bank account to sync the settlement payment we received from Stripe. As we are also using the bank (that allow us to issue a virtual credit card) to make payment for our COGS. This transaction are synced to QB and we can categorized that according to the type like - Marketing Cost, COGS..etc

3. We do not have Paypal connected as the country where our Paypal account sits does not looks to be supported as we try to create the connection in our QB. 

My issues are :

1. For those transactions synced by our bank to QB, after we have categorized it under the Bank section, when we attempt to generate the "Cash Flow Statement", it does not looks like it is detecting it as our cash.

2. As we don't have PayPal connected, how do we record the balance / 'cash' we have in our PayPal account in our QB so that it will be recognized as our cash? (assuming I got the concept right?)

You still have to follow the steps outlined, otherwise the software doesn't know what to do. Just because you don't use Quickbooks for invoicing, doesn't mean the invoice doesn't have to be entered. If there is no invoice, then how is Quickbooks supposed to know what to 'match' when the banking transactions come in? Answer: it doesn't, because you haven't given it that information.

Also, I have found that if you enter things directly into the deposit screen (rather than completing all the steps), it often does not flow through to reports. Again, this is because you have not given the software all the data points it needs. It is great software, but you have to give it all the information for it to work. 

The safest bet is to follow the arrows: enter bills -> enter invoices -> receive payments -> record deposits Hope this helps. 

Thanks for getting back to us, @cpandy.

I appreciate all the details you've shared in this forum. Allow me to chime in and share additional steps to sort this out.

For your first question, you'll have to make sure that you've entered all your transactions into QuickBooks. Then, check the date range of your report, you can also set them into a three-month date range. This is to cover all the transactions for income and expenses for each month. For more details, check these articles: 

• How to run a Statement of Cash Flows
• Customize reports in QuickBooks Online

Also, the information shared by MrsArray is correct though the screenshot shared is for QuickBooks Desktop, you can still follow them in QuickBooks Online.

The first step is to create a bill and link the billable expenses to an invoice. Here's how:

1. Click + New and choose Bill.
2. Select the Vendor.
3. From the Category column, select the expense account for the transaction.
4. Enter the description and amount of the expense and select the Billable checkbox.
5. In the Customer column, select the customer you want to bill for this expense.
6. Fill in the necessary field. Then, hit Save and close.

For additional information, you can click this article: Enter billable expenses.

Then, you can now add or link the billable expenses to an invoice. To start with, I recommend going to the Sales page and locating the existing entry. Please follow the steps below.

1. Click Sales at the left menu. Then, go to the Invoices section.
2. Find the invoice and click it to expand the page.
3. Press the Edit invoice button that appears in the right corner.
4. On the Invoice page, click on the arrow beside the Balance Due.
5. Tap on Add on the billable expense/s under Add to Invoice to add them.
6. Hit Save.

Once done, you can now process the payment and make a bank deposit. For complete steps, click these articles:

• Record invoice payments in QuickBooks Online
• Record and make bank deposits in QuickBooks Online

Additionally, to learn extra about downloaded banking transactions and reconciling, see the below links for a guide:

• Categorize and match online bank transactions in QuickBooks Online
• What's a reconciliation?

You can always get back to this thread if you have questions about QuickBooks. I’ll be around to answer them for you. Have a good one. @cpandy.

Thanks @MrsArray @JoesemM for the guides.

So in short, even we have the bank integrated with QB and synced, QB will not be able to understand what was those money (that we received via settlement with Stripe) until we issue an invoice and mark it as a revenue. Do I get this concept right? :)

If this is right, the next question follows.

1. As some customers pay us on a yearly subscription (say $120 for one year) and the bank will receive $120. Through the 3rd party system that we did the analysis to capture the final revenue, we only recognize $10 for this month and the remaining $110 will be as deferred for next 11 months. The invoice revenue that we will be issuing will just be $10 and what suppose we should do for the $110 as it won't be matched with the bank deposit that we have received.

Side note to that, is there any right resources I can pick up how QB concept works? I think picking up the concept will be helpful aside from knowing the steps to do any task and I truly agree that QB is a nice software :)

Thanks for getting back to us, @cpandy.

Allow me to join in this conversation and provide you with further assistance in recording your transactions in QuickBooks Online. 

For your first question, you're right, you won't be able to match the $10 invoice (created inside QuickBooks) to the downloaded payment.

If you want to divide the customer's payment for 12 months, then you'll have to manually create invoices and record its payment in the program. Please take note that this won't match your actual bank statement and will affect your books. 

If you're not sure about this process, reach out to your accountant for further advice. They can provide you with the right info to properly record your transaction. 
 

You can also check out the following articles as additional resources in handling customer's payments:

• How to receive and record invoice payments in QuickBooks Online
• how the new estimates and invoices in QuickBooks Online can help your business

Keep me posted how it goes by leaving a reply below. I'll be happy to help you out if you have any additional questions about the process. Wishing you and your business success.