Good day, @liquakerlady,
I can clarify things out for you.
You'll treat PayPal as a bank account within QuickBooks, not as a payment tool. This is how our integrations including Connect to PayPal, are designed. By this, you can regularly reconcile your balance with your PayPal statement.
It also means when you withdraw money from PayPal into a real bank account or Pay with PayPal using a credit card, these scenarios should be treated as transfers between two accounts in QuickBooks. It's between your checking account and PayPal account, or between your PayPal account and your credit card.
With the Connect to PayPal app integration, we ensure QuickBooks has your transaction details and helping you with monthly reconciliation. We will fetch your transactions from PayPal automatically, displaying them on the Banking screen on the “For Review” tab. This will allow you to handle them just like a bank connection.
To connect your app, please read through this link: Use the Connect to PayPal app. Then, go to the Set up Connect to PayPal section for detailed steps. Also, this article provides answers to frequently asked questions.
Once connected, you can change the settings for your PayPal transactions by going to this page: Modify settings for Sync with PayPal. It will help you edit mapping settings to post entries on the appropriate accounts.
If you're uncertain of using the application, you can pay bills using Online Bill Pay. And, received customer payments using QuickBooks Payments account.
Should you need anything else, please let me know. I'm always around to help you out.