 0 accounting software 2023 paypal bank feeds get ready to become an accountant hero with 0 2023 here we are in our custom zero home page going into the company file we set up in a prior presentation the bank feed file we're gonna duplicate some tabs to put the reports in like we do every time right click it on the tab up top so we can duplicate it right click it on the tab up top so we can duplicate it back to the tab to the middle accounting drop down opening up the balance sheet report then we're gonna tab to the right accounting drop down this time opening up the income statement date range change we're gonna go to the drop down we're looking 2022 January 1st we're going to the end of 2022 that being December 31st updating the report let's go down to the first tab and then accounting drop down and look at our bank accounts now in prior presentations we've been looking at our bank feeds we looked at the checking account we looked at the credit card account now we want to consider some of those intermediary tools that you might be using in particular we're looking at paypal so if you have a paypal system set up then it used to be that something that a paypal was used for many small businesses primarily as a format to help collect payments and then transfer those payments into our checking account so if that's how you're using paypal then you got to think well what's the easiest method that I could use and this this comes down to again the industries that we're going to be in and we want to really think about our particular situation to try to come up with the cleanest easiest system that we can use often remembering when we're looking at this system that there's going to be some sort of trade-off between a lot of detail versus less detail but more simplicity in order to track our information so if you're using like a paypal for example as a a system of collecting I'm looking at a flow chart now this is a QuickBooks desktop flow chart but we're looking at just simply the flow which is the same for basically any kind of accounting system and we're primarily looking at the revenue cycle here so we talked about in prior presentations if we're trying to construct our books directly from the bank feeds then the easiest system is just to wait till something clears the bank to record it as revenue but that only works in certain industries that would work in like gig work industry if you get paid by YouTube or something like that if you're in an industry where you're at a cash register then you can't really do that because oftentimes the internal controls of tracking the cash for shoot of one of record the transactions as you're making them and then deposit into the bank and use the bank rex to match and in if you are in and a cruel type of system where you're invoicing clients you have to track the accounts receivable so we've talked about those systems in the past what if you're in a system where you're getting paid through an intermediary type of financial institution if you're doing online work for example with a Shopify or something like that or you have your own website and you're getting paid for something online then they might not be depositing directly into your checking account they might want to use these third-party facilitator tools to help to collect the deposits such as a PayPal as a classic one or it might be like a stripe or many other kind of intermediary payment processors that are going to be kind of getting in between the payment that's coming to you from the platform and what's actually going to go into your bank account now so if for example you work like you have a Shopify store or something like that then it might like you might get paid through different of these intermediary platforms then the question is well how do I want to record the sales on my side the easiest thing to do is just to wait until it clears the intermediary platforms to my actual checking account and when it hits my checking account I've recorded at that point in time however if you do that you're going to lose some of the detail in your zero system from the actual sales transactions because by the time it hits your bank account it might be grouping multiple sales transactions that have happened and if it's a Shopify store or an Amazon kind of thing then you might have other costs that are kind of grouped into that deposit you put in your account such as the fees and whatnot related to do the Shopify store and that kind of stuff now you might be okay with that you might say well that's the easiest system I don't need all that added detail I have what I need so I'm going to wait till it hits my bank account and just record it as revenue that's the easiest thing to do when I want to look at the more detail I can look at the customers on the Shopify side or on the PayPal side or on the Stripe side that made the actual transactions you could have a similar situation where you do gig work for multiple platforms let's say and this will be kind of like our example here and those multiple platforms then might be might be paying you through some kind of third-party processor like a Stripe or like a PayPal and you might say well I'm just gonna I'm just gonna take it out of Stripe or PayPal and put it into my account and then I will just call it revenue once it hits my account what you're gonna miss on the detail if you do that is the fact that the payments that went through the processors came from different sources if they were different sites like if you had a teaching platforms that came from different teaching platforms or something like that then then you're not gonna have all that added detail in your account you're just gonna call it teaching revenue so again the question is is that good enough is that enough detail is that all the detail you need it might be good enough to just do your taxes if that's all you need although it doesn't give you that added detail of breaking out the source of the revenue that that it came from now your other option then is to say what I'm gonna do is I'm going to try to connect to the third-party platforms I'm gonna try to pull the information this is a little bit more difficult oftentimes on like a Stripe type of thing if you're using that because usually you have to use different integrations to kind of connect those accounts you can't do it but you have to be very careful if you're doing those integrations because if you have something like a Shopify store then you probably don't want all the customer data in your zero account because the Shopify store is just usually often one-time sales of bulk sales and they already have all that information on the Shopify side so you don't really want to be careful not to use apps or think about whether you need to use an app that's gonna pull all the information into zero which might be redundant because you might already have that information if you do that and you add a whole bunch of transactions into zero that you don't need it could end up slowing down the zero system so just be careful with that with PayPal the other thing with PayPal is that you might start using PayPal because it's quite convenient to pay for expenses as well in which case you're now using PayPal as a kind of checking account so PayPal has kind of morphed from just just like a thing to just transfer you know transactions oftentimes businesses for getting payments to something that is used to make payments and therefore it's acting more as a checking account so PayPal in particular has the capacity to connect to the bank feeds so that's another option with that particular intermediary platform you could connect to PayPal right so if you connect to PayPal what's gonna happen is you make the sales they come through PayPal and then you're gonna be able to have inter interbank fee transactions as you transfer from PayPal to the checking account and then you might have payments they come out of PayPal as well in a similar way as another checking account so this is kind of similar to another checking account as well if we had two checking accounts or savings account all right so let's so we could just add PayPal so what I'm gonna do is I'm gonna add another account but we're actually gonna upload the information from a CSV file but but go through the connection process as if we're gonna connect directly so we're in the banking area I can add a bank account and if I search in here it's gonna try to connect so I could search for PayPal and you can see that it does have a PayPal so with select the PayPal and and zero is gonna say automatically import your PayPal transactions so normally you would want to do that