Import PayPal transaction information into QuickBooks
Last night I decided I'd finally sit down to import some of my business PayPal transactions into Quickbooks. After one failed attempt I started searching online for a tutorial of sorts. Finding nothing but a few discussion board posts on the topic, I gave it a few more tries on my own. I finally went to bed with nothing but a few dozen voided journal entries to show for my efforts.
Today I finally figured a way to do it that met my needs. Since the tools I wanted didn't seem to be anywhere else online, I figured I'd do my part to get the word out. Who knows if one day some poor soul like myself will stumble upon this post and save themselves from a messy accounting ledger. I can only hope.
The task: Import PayPal transactions into Intuit QuickBooks Pro 2008.
I run a small, home-based business. Most of my business transactions are done in person, so I have yet to develop any type of online store. Occasionally I have a customer who cannot pay with cash or check, but would like to pay with their credit card via PayPal instead. Though I'm not excited about paying the PayPal transaction fees, I would much rather win the customer (I can use all the business I can get).
PayPal allows me to download my transaction history and import it into QuickBooks. That's a wonderful tool, but it's not dummy-proof. I have to know exactly which accounts I would like the Transaction Total, PayPal Fees, and Net Income attributed to. The problem is, I don't know.
The Math
I don't know accounting too well, but what I do know really helped me finally figure this out.
In general, Assets equal Liabilities plus Owner's Equity.
A = L OE
Whatever you do to the equation, the end result must keep it in balance.
Make a sale: Increase Accounts Receivable (Asset) and increase Revenue (Owners Equity).
Receive a Payment: Decrease Accounts Receivable (Asset) and increase Cash (Asset).
Because PayPal imposes a fee on a transaction, and I never actually see the money before PayPal pulls their share out, the increase in Cash is not as large as the decrease of Account Receivable. In order to keep the equation in balance there must be another adjustment. The PayPal fee is accounted for by increasing Expenses (which falls under Owner's Equity, sort of, because it acts to decrease Equity).
The Method
I'll spare you the steps I took to find this out.
When getting ready to download the Transaction History from PayPal, it asks what file type I would like. Because I'll be importing into QuickBooks, I choose the QuickBooks (.iif) format.
I am then asked the exact name of the accounts I would like my information imported into. They are:
Name of PayPal Account
Today I finally figured a way to do it that met my needs. Since the tools I wanted didn't seem to be anywhere else online, I figured I'd do my part to get the word out. Who knows if one day some poor soul like myself will stumble upon this post and save themselves from a messy accounting ledger. I can only hope.
The task: Import PayPal transactions into Intuit QuickBooks Pro 2008.
I run a small, home-based business. Most of my business transactions are done in person, so I have yet to develop any type of online store. Occasionally I have a customer who cannot pay with cash or check, but would like to pay with their credit card via PayPal instead. Though I'm not excited about paying the PayPal transaction fees, I would much rather win the customer (I can use all the business I can get).
PayPal allows me to download my transaction history and import it into QuickBooks. That's a wonderful tool, but it's not dummy-proof. I have to know exactly which accounts I would like the Transaction Total, PayPal Fees, and Net Income attributed to. The problem is, I don't know.
The Math
I don't know accounting too well, but what I do know really helped me finally figure this out.
In general, Assets equal Liabilities plus Owner's Equity.
A = L OE
Whatever you do to the equation, the end result must keep it in balance.
Make a sale: Increase Accounts Receivable (Asset) and increase Revenue (Owners Equity).
Receive a Payment: Decrease Accounts Receivable (Asset) and increase Cash (Asset).
Because PayPal imposes a fee on a transaction, and I never actually see the money before PayPal pulls their share out, the increase in Cash is not as large as the decrease of Account Receivable. In order to keep the equation in balance there must be another adjustment. The PayPal fee is accounted for by increasing Expenses (which falls under Owner's Equity, sort of, because it acts to decrease Equity).
The Method
I'll spare you the steps I took to find this out.
When getting ready to download the Transaction History from PayPal, it asks what file type I would like. Because I'll be importing into QuickBooks, I choose the QuickBooks (.iif) format.
I am then asked the exact name of the accounts I would like my information imported into. They are:
Name of PayPal Account