PayPal is a unique payment tool that is becoming ever more popular as customers and vendors become more comfortable with electronic payments.
PayPal can be viewed as a payment processor, or an invoicing/sales tool, or an online checking account or wallet, or all of the above! However, this versatility also means it can often be confusing and complicated to handle in QuickBooks.
In general we recommend customers treat PayPal as a ‘bank’ account within QuickBooks. This is also how our integrations including Connect to PayPal, are designed. By thinking of PayPal as a bank, you can (and should) regularly reconcile your balance in QuickBooks with your PayPal statement. It also means when you withdraw money from PayPal into a real bank account, or when you Pay with PayPal using a credit card, these scenarios should be treated as transfers between two accounts in QuickBooks (between your checking account and PayPal account, or between your PayPal account and your credit card)
With our Connect to PayPal app integration, we help make it easier to enter transactions from PayPal into QuickBooks, ensuring 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 in the “For Review” tab, allowing you to handle them just like a bank connection.
However, unlike regular bank connections, we are also able to fetch details on what you sold through PayPal and what you paid for, as well as PayPal transaction fees, resulting in more detail and accuracy for your transactions in QuickBooks.
If you have never used the banking section or have never connected a bank in QuickBooks before, we recommend you first go through how to Add and match Bank Feed transactions.
Now, let’s get you started. There are a couple of ways to connect — the choice is up to you. You can get the app when you are connected to QuickBooks, or you can also visit the QuickBooks App Store.
Let’s start with connecting from within QuickBooks. To start by connecting from the QuickBooks Apps Store click here