The PayPal-2 account is indicated by a double-arrow icon, which means it is connected to online banking, Playawest45. This connection automatically downloads transactions from PayPal into QBO via a bank feed. Once a transaction is fully processed/completed through PayPal, it will appear in the “For Review” tab of the banking screen, usually within 2 hours.
The PayPal balance account in QBO is set up to track all the transactions that occur in your PayPal account, much like a bank account. It maintains a running total of deposits, withdrawals, and fees to accurately reflect the current balance in PayPal. This account doesn’t have a specific time frame and continues as long as you use it to monitor PayPal activity.
The running total is important because it helps ensure your records in QuickBooks match the actual balance in your PayPal account. It also facilitates easier reconciliation of transactions, tracking of cash flow, and preparation of accurate financial reports.
If you need further assistance while managing your bank transactions, let us know. We'll be here to provide further assistance.
