PAYPAL - What are best practices to enter and reconcile all PAYPAL transactions in Reckon Hosted?

marco_petershearer
marco_petershearer Member Posts: 8 ✭
edited June 5 in Accounts Hosted

Hi, is there anyone in the community who has got experience in using PayPal in their business and who feels have nailed how to do the bookkeeping for all transactions that go through PayPal, especially with regard to RECONCILIATION? We are new to PayPal for business and keen to get started with the right foot. Thank you in advance to those willing to spare 5 mins of their time to share their tips with us πŸ™‚πŸ™

Answers

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,167 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited June 5

    Yes, create a PayPal Bank account.

    Enter all income transactions via Sales Receipts that deposit directly IN to this PayPal bank account:


    Record all fees/outgoings via a Write Chq OUT of this bank account:


    This leaves a net balance in the PayPal account equaling the net amount you receive/deposited into your main bank account.

    You then enter a Write Chq (or Transfer Funds - I prefer using a Chq for more detail) to transfer this:

    Your PayPal account should always come back to $ 0.00 (or whatever the balance is in there):

    You then reconcile this account just like your normal bank account:


    TIP: Memorise the entries as a guide to enable simple - & correct - re-entry, anytime:

    That way, you only need to change the specific detail on each (eg Dates, Items, Amounts) but the main features & process is retained 😊

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner(AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    [email protected]

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)