 QuickBooks Desktop 2023, bank feeds, PayPal data input and transfers. Let's do it within 2-ids, QuickBooks Desktop 2023. Support Accounting Instruction by clicking the link below, giving you a free month membership to all of the content on our website broken out by category. Further broken out by course, each course then organized in a logical, reasonable fashion, making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files, and more like QuickBooks backup files when applicable. So once again, click the link below for a free month membership to our website and all the content on it. Here we are in QuickBooks Desktop, bank feed practice file. We started up in a prior presentation going through the set of process we do every time in the view drop-down. We got the hide icon bar, the open windows list. We got the open windows open on the left, reports drop-down, company financial. Let's open up the P to the L, the profit and the loss and change the range from 010122 to 123122. Then we'll customize it, fonts to the numbers are going to go up to 14. Okay, yes, okay. Then reports again, company financial. This time the balance sheet. We're going to do the same kind of stuff but starting off with the customization of the reports. So 10122 to 123122 on the range and then fonts to the numbers has to match. We got to be matching up to 14. Okay, yes, and okay. Let's go into those bank feeds, our focus for this presentation. Banking drop-down, bank feeds. The bank feed center only being open there or there if you had set up the bank feeds which we have done in a prior presentation. We got two groups of bank feeds. One of these two items that are under the category of the financial institution Wells Fargo. The other under the financial institution here which is a generic kind of name because we set up the PayPal account under it. Having to do a little bit of some finagling to get the PayPal data input in here. I won't go into it in detail now but generally we went to PayPal. We downloaded the CSV file. We then converted it from a CSV file to a QBO data input file so that we can upload it into the system so that now we can see the difference between basically the kind of methods we could use if we're using something like a PayPal. Primarily I'm thinking, for example, in order to collect revenue if we have something like a gig work type of platform. And you can think of similar kind of problems if you had other kind of platforms like a Stripe account or something like that. So let's just review the methods you could use. If I go into my Wells Fargo, the normal checking account, we could say, hey look, if I'm just using this intermediary platform as an interplay to collect my money and then transfer it on over to my checking account. I could wait till it actually hits my checking account and just enter it at that time. And that's one method that I could use. Another method that I'd have to use like a generic payee and I'd have to put it to one income account for everything that got transferred in. But that might be fine if, for example, all of the revenue that's coming through is coming from the same customer or I don't need to track the customer in QuickBooks. I can track it in the other system and it's all going into the same income account that I want it to be going into. If I want to break out and give it the more detail about who paid us the money because possibly of multiple people paying us or multiple customers paying us through that platform, then I would need to either integrate with a software that could pull that more information in using an app possibly could help us out. Or we can try to import the bank feeds. And so if I have the bank feeds and now I can record the revenue when it hits the account for PayPal. And then I can, when they pull over here to the checking account, it'll be a transfer, which is an intercompany transfer that gives us a little bit more detail on the income side. So PayPal in particular, unlike other platforms like a stripe, could be used not only just to receive money, but also to make payments. You can use it as a checking account. So if you're making payments out of the PayPal account, then of course you would like the bank feeds more and more at that point because it'll allow you to automate the payments that you're making out of the account. Okay, let's go back on over to this one, and let's just add them and then I'll add the transfers. So if I if I was to I'm going to uncheck all of them, and I'm going to sort these by let's say the deposits. And so I've got these these items here so we're going to pretend that we're a gig kind of work again and these are platforms that are paying us. So since we are gig work, I'm going to wait till it clears the bank in this case PayPal and just record it as income with the deposit. Remember that these will show up as deposit forms. That's not the natural form if I go back to the homepage to record income because usually it's an invoice or a sales receipt. And if we use the bank feeds to record the income, such as quite easy to do with gig work and a platform paying us, then we're going to lose some of the added detail of the customers breaking out the sales by customer and breaking out the sales by item, the thing that we sold. We still can add the customers, but we're not going to get that sub report the sub ledger report that we would have if we were using these forms by customer. We still want to add the customer, however, and we still get a little bit more detail since that is in the bank feeds because we have electronic transfers from the platforms that are paying us. That also means that if I go to the profit and loss, we're more likely to set up our income accounts just by the name of the platform that pays us. We wouldn't normally do that if we had any other kind of setup because if we were using invoices and sales receipts, we would just want to call it a generic income account for whatever category of income that we have and then use the sub accounts, which would be the reports drop down sales, sales by customer summary or detail, whichever and sales by item, the things that we sold. That's where you'd want to give that more detail that can give you the sales by item, the thing that you sold service or inventory, and then by customer as opposed to putting it here on the income statement. But if we're just using deposits, then it kind of makes sense to put it on the income statement here more and more. So I'm going to go to the bank feeds and do that, then I'm just going to say, All right, this is going to be teachable tab. I'm going to auto add that and I'm going to do this fairly quick because we've seen it in the past. So I'm going to make it a customer and say, Okay, and then I'm going to say it's going to go to the account. I don't want to just go to sales. I want to make a new account called teachable income. I'm imagining that that that is an income or a place that's providing me income a platform. So I'm going to set it up. It's going to be an income type of account income type of account. Okay. Boom. Let's then make a rule forward. So I'm going to add details. And then I'll make a rule. There's going to be rules around here. If you want to live under this house, dang it, this roof, you're not under the house, you're under the roof. Teachable. So we're going to say there's the rules going to be teachable. And I'll just add that boom, save it, save and close. So there it is and it pulled a couple of them over here. Then we've got a similar thing. Let's sort of this way got skills success. So I'll do the same thing here. Well, let's just check out what happened. And then I'll do the other ones fairly quickly. And in the balance sheet, we now got a PayPal account double clicking the PayPal account, the deposit got recorded double clicking on the deposit. There it is closing this back out closing this back out other side PNL profit loss. Otherwise, no one is the income statement. We've got then the new accounts, what do we call it? Teachable Skillshare was it that we already had a Skillshare account. Maybe it was this one that we set up. No, it was teachable teachables right here. So boom, there it is. All right, so closing that out. We also set up the customer and the customer center. So now we've got the customer here and the customer center for teachable so we can look at the detail there. But because it's a deposit form, I can't run the sales by customer. So I don't really have that report, even though I still have this detail for the customer in the customer center, which is nice added detail. So you want to make sure that you do add the customer so you can at least get that piece of detail. So I'm going to say skill success and we'll do the same thing here. Boom, quick and add. It's going to be a customer. And then I'm going to say that the account I'm just going to make a new account skill success tab. Let's make it skill success. And that's not good enough skill success income account tab, set it up. It's going to be an income account, an income account. And there it is. We'll set a rule. We want to set a rule for it here. I have lots of rules. Lots of rules in this house. Dang it. Everything's working according to skill success skill success. That looks good. I think that'll work. And so we probably I usually go to description and contains instead of match I probably don't need the calm and then save it. Boom. And then bam. So that's been added. See what else we've got we've got you to me I'll do the same thing. You do me. I'm not a dummy. You dummy. You dummy. Whatever. Call me a dummy. You do me. This is going to be a customer. So we're going to say there it is. And then we'll call this you do me income. Boom. Set up income account. And save it and close it. Let's add a rule. And we'll put this down here we'll call it just you to me rule. And then let's go description match. We're going to say contains. That should be good. Save it. Save it. So that's good. So now all of those have been should be pulled over all add these recognized transactions with the rules applied batching them out. I'm just going to add them just like we saw in the checking account. I'm just going to say add confirm confirm 10 for 10 for Roger out confirmed. And then we'll go back on over here and if I go to the balance sheet, then now we've got PayPal activity happening. We have the same kind of things with the checking account when we do the reconciliation. If we had a beginning balance in PayPal, we've got that beginning balance issue will have to deal with one which we talked about when we did the reconciliation for the credit card, one which we will talk about when we do the beginning balance or reconciliation for the checking account. We won't do it for PayPal but it'll be the similar issue that you'll have with that. So then let's go to the profit and loss and the P to the L and we can see now we've got the new categories. We have a lot of different income accounts because we got these different platforms we set up which again would not be something you would typically do if you had a full service accounting system using the invoices or sales receipt to record income. But if you're using platforms, it could be a good system to go so we've got we set up the teachables and we've got the deposit forms boom that have been set up and we're just adding those as we go and we can just automate the whole process which is just incredibly. And so then what was the other one we set up skill success I think skill success we set that up boom alright so let's go back on to the bank feeds. And then these are inter company transfers or enter bank transfers so this is going out of the PayPal and into the checking account so if I go to the checking account, then we're going to say, okay, I could have waited until it cleared the bank and if I did that I could just have recorded this as income. If I didn't want all that other detail that we just put in place to terminate who we got the money from right, but now these are transfers. And so now I'm just going to record the transfer I can record it on either side just like we talked about with the credit card. I usually would think of it first from the checking account. So that's just how I normally think of it so if I'm thinking this 999 I'm going to go to the checking account Wells Fargo and say I would record it here first right this one I think it was. And then I'm going to say I'm not going to put a payee because it's a transfer and I'm going to say this is going to be going to the account of PayPal. And then I'm going to add that and it's going to record the other side going to PayPal so it's going to increase the checking account because it's a deposit other side going to PayPal right so I'm going to say okay, let's do it. And then if I go to the balance sheet we go into the checking account we should see that number there. And so there it is it doesn't and so so here it is and then the other side is going into PayPal right here. And there it is or coming out of payroll PayPal it doesn't have a little lightning bolt because it is hasn't been recorded in the payroll PayPal bank feeds. Once we do it will check it off. Now notice it is using a deposit form because that's the form we used to record it in the on the checking account side which which was an increase which was a deposit which looks funny here because this is kind of a checking account. So it would be more precise to use a transfer form which could kind of indicate this is a transfer between accounts so that doesn't have a deposit for a decrease on the other side of the checking account. But you know this kind of a technicality doesn't you know it's not the biggest of deals although it can that can cause you kind of some issues if you're sorting by type of transaction. Okay let's do another one if I go back on over to the bank feeds we could do it from the other side. So well let's go to the other side first if I go here then now it's recognized as transaction here it is it's been recognized my options here is to ignore or view details or match it if I say view details. Here's the information for it I'm going to close that back out and let's go ahead and confirm it that will give me the little check mark so if I go back to the balance sheet and I look at the PayPal account. Now we've got the check mark or the lightning bolt closing this back out if I go back to the bank feeds now we could start it from the other side. Let's do the same thing but first enter it into the PayPal which is going to be a decrease this time. So because I'm recording it on the PayPal side the decrease to a checking account will be a check type form you would think typically right. So now you would think we might end up with a check type form which looks right on the PayPal side of things when we look at the detail but when I go to the other side. To the other checking account it's going to have a check that records possibly a deposit which looks a little funny there which again it might be you know so but no big deal we're going to say OK pay the other account is going to be the checking account. Right that's what I called it I think isn't it see so I'm going to say OK let's add it. Boom I think that's all I need to do if I go back on over to the balance sheet now we said the PayPal account double clicking on it has that other amount that we recorded this time. There it is the 5000 right here recorded as a check this time whereas the last decrease was recorded as a deposit which is weird right because we recorded it from PayPal so it generated a check form to do it this time. And then the other side is going to look a little funny because now I'm going to go into the checking account and we should find that 5000 right here and it's recorded with a check even though it's an increase because we entered it from the PayPal side of things. It does not yet have a lightning bolt next to it so if I go back to my bank feeds and I go back to the Wells Fargo and I say and I say I'm going to confirm Roger out that one deposits and where did it go right there confirm it. Confirm 10 for Roger out then we can go back to the transaction and the lightning bolt should be applied boom lightning bolt. So Zeus has made an appearance and hit it with a lightning bolt. So now I'm going to do the last one that we have here just to finish this up we're going to say the other one was this one. So I'm going to say all right this one's going to go to PayPal boom and then add it I'll do it from the perspective of the checking account at it. That means balance sheet double click the checking and there that is it's now been recorded with a deposit form because we started from the deposit side closing this closing this back to the other side goes to PayPal. It doesn't have a lightning bolt yet the decreases now recorded with a deposit form which looks funny on this side closing it out bank feeds going to the drop down and then we want the other side has now been recognized. So there it is auto matched auto match confirm Roger that balance sheet. Now if we go back into the PayPal we should have a check off and it has been checked off check off man. Why don't you just check off. So there we go. And so then the profit and loss. There we go. So then if I go back to the bank feeds that's the general idea of the PayPal and so so you could see the differences between waiting for to clear the bank. Where you could where you could just record the deposit as income but then you'd have to group it all together and you would only have like one income statement account here most likely called whatever income account instead of multiple platforms. You can break out the detail of the multiple platforms and those into their own accounts and possibly different customers that are possibly paying you through an intermediary platform like PayPal. If you enter the bank feeds and or possibly if you look if you use some kind of integration software to help you with that process as well that's another option you can look into.