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Do you maintain a PayPal account in QBO?

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  • Do you maintain a PayPal account in QBO?

    Hello and thanks for accepting me into the forum.

    I use PayPal to pay suppliers but sometimes also get paid by customers via PayPal.

    Should I maintain PayPal as a bank account in QBO or treat it just as a payment method?

    In general (unless there is a balance on PayPal) a payment out is paired with a transfer in.

    These transfers come up on the business current account as a transfer to PayPal.

    I could:
    1. leave these as transfers to PayPal in QBO and the supplier is paid from PayPal or
    2. (as I do now) modify these transfers on the business current account to be the supplier payment (with payee and expense category)

    In 1 (transfer funds to PayPal):
    I need to maintain the balance of the PayPal account and enter transfers in and out

    In 2 (modify the transfer to PayPal):
    For supplier payments, I wouldn't need to maintain the PayPal account in QBO, just keep modifying the transactions to add supplier and expense category.
    However, I would not be able to mark a customer invoice paid until I made a transfer from PayPal to the business current account, for the exact amount of the customer payment.


    Question:

    Do you use PayPal?
    Do you maintain the PayPal account and balance with transfers in and transfers out in QBO?

    Thanks in advance
    Mark
    Last edited by markjl; 11-01-2019, 06:22 AM.

  • #2
    Any financial account which may have a positive balance should be represented by a Current Asset account of some kind. And if the account theoretically cannot have a negative balance--true of checking accounts, PayPal, and others--it should be maintained in QuickBooks as a Bank type account (a category of Current Assets).

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    • #3
      Yes it does. Connect to PayPal is a more robust app that brings in your PayPal transactions into QuickBooks with new features. If you are an existing Sync with PayPal customer, just click 'Get App Now' and your existing app will be updated.

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