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Accounting for PayPal Sales

Accounting for PayPal Sales
For an organization who uses PayPal exclusively for sales, it’s possible to import the transactions into the accounting system every month, for example via the Batch Enter feature available in QuickBooks Premier Accountant Edition.
First curate the data in Excel to remove line items that never actually happened (invoices, for example), separate disbursements from deposits, import, gross up for merchant service fees, adjust for sales tax if any, and reconcile.
When a transfer happens between PayPal and the company’s bank account, and it’s sent from PayPal in one month and clears the operating account in the next month, record it as of the date it was actually executed. Clear it in the PayPal reconciliation and it’s outstanding in the operating account reconciliation.
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