 QuickBooks Online 2024. PayPal bank feeds import data to QuickBooks. Get ready and some coffee because we get work done on time with QuickBooks Online 2024. First a word from our sponsor. 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because the scientific survey participants could really use some extra cash if you would like a commercial free experience consider subscribing to our website at accounting instruction dot com or accounting instruction dot think of it dot com here we are in our quick books online bank feed practice file we set up in a prior presentation opening the major financial statement reports as we do every time the reports on the left hand side within the favorites right click it on that balance sheet to open a link in a new tab right click in the P&L profit laws otherwise known as the income statement to do the same as well as with the trustee TB trial balance if you don't have that trial balance in the favorites you can search for it let's tab to the right close the hamburger change the range we're going from 010124 tab 033124 tab selecting the drop down so we can see it on a month by month breakout and run it let's tab to the right close the hamburger again change the range 010124 tab 033124 tab drop down so we can see the months and run to refresh one more time tab until the right close in the hamburger and then we'll change that range 010124 tab 033124 tab selecting the drop down months and run it almost forgot on that last one that last rep very barely got that one out let's go back to the balance sheet we've been working on our bank feeds and we've been first connecting the checking account with the bank feeds and then we noted that you could connect the credit card account so we connected the credit card account down below now other things that you can connect to the bank feeds could include other checking accounts savings accounts and possibly even brokerage accounts if they're with your financial institution where you might be investing say in stocks and bonds for example this time though we want to connect to the PayPal which will act kind of like another checking account so let's go over a quick little history of the PayPal note that PayPal used to be able many people used it to facilitate electronic transfers more easily than on their other banking system possibly being able to facilitate transactions with other institutions and possibly even you know in other countries and that type of thing from a content creator side of things many people used something like a PayPal as an intermediary in order to collect funds which would be more secure possibly with on their website or payments from third-party platforms and in that sense then PayPal was kind of an intermediary platform to help facilitate the transactions and then but more and more these days PayPal is being used to make normal payments as well so if you're making payments with PayPal more and more it's going to look like a checking account so how you're going to set up PayPal within QuickBooks might depend in part on how your what your flow looks like in terms of how you're treating PayPal is it just a source to facilitate deposits from other platforms that you need and then you're just going to transfer that into your bank account as soon as you get the money or are you using it more like a checking account and are if you are having more advanced uses of it are you using it in more difficult transactions possibly with other currencies where you might have fees related to the transaction and do you want to break out those fees all right so why is that important well let's go back to the first tab and let's go to the transactions and then we're on the bank transactions so if we look at our checking account let's imagine a situation where we're just going to use PayPal as a tool for us to collect money from possibly from like our website or possibly from another platform that wants to pay us through the platform of PayPal rather than going to it to an electronic transfer to our bank and all we are doing then is taking the money out of PayPal as soon as it goes there and putting it in our bank well if that were the case then we might not need to connect the PayPal right we might say do I need another PayPal up here to connect to the PayPal well if you're just using PayPal to say someone sent me money YouTube sent me money let's imagine they sent it to PayPal for whatever reason then I'm going to wait till it hits PayPal and then I'm just going to transfer it into my checking account then you might you might just say well it would be easier for me not to connect the PayPal because I'm just going to wait till it connects to the checking account something similar to the stripe here which which is a similar kind of intermediary platform and I'm just going to record it as revenue once it hits my my checking account that would be the easiest thing to do so if I had my own website for example and people paid me through PayPal sometimes right if if all the money that's going through PayPal is from my website and I'm just using it as a tool to facilitate the transaction which is a secure format of the transaction and then I take it out of PayPal as soon as I get it and put it into my checking account then everything that is deposited from PayPal I can assume came from the transactions for my website and I could just record it as revenue once I see the transfer into my checking account you see how that might be the easiest kind of format in that type of scenario however once you start using PayPal you might start using it for other things if you're paying things out of PayPal like you're paying expenses out of PayPal for example and sometimes that's just an easier thing to do sometimes that's an easy way to connect your your online payments then it's more likely that you're going to need to connect it to another bank feed if you could or use the app which we'll talk about shortly because then then you're going to want to pull in all the transactions that you're paying out of PayPal so if you're making normal monthly payments out of PayPal then you probably want to treat it like a checking account or if you get paid from multiple places let's say YouTube your website and you know another platform all pay to PayPal and then as you get the money in PayPal you transfer that money to your checking account well then it gets a little bit difficult to categorize the payments if you want to break out the payments that came from YouTube versus your website versus the other platform then it might be a little bit more difficult to to differentiate that if you transfer it from PayPal into your into your QuickBooks with one lump sum right so that might be another reason why you would need to break out the PayPal as it as its own as its own checking account that you would connect directly to the bank feeds or use the app you have a similar situation with like Stripe and other types of payment platforms if they're working as an intermediary platform the question is like if Stripe was facilitating transactions from my website do I really need all the transactions that are coming from the website in QuickBooks most people would probably argue no it might be better to use that to use your website detailed data for Stripe to see the transactions there and just pull in the end result meaning once the Stripe hits my checking account I'm just going to record it as revenue if I have a website I don't need to try to track all of the sales to all the individual customers that might not help me all I really want is to be tracking the enough to have their them on my email list right so I can send them basically emails I don't need to see every transaction in QuickBooks because that will log down or slow down possibly the system it's more detailed than you need in QuickBooks would be the general idea all right so let's imagine that we're going to connect PayPal and we think that we need to have PayPal as like a checking account system with the bank feeds there's two ways that you can basically do it you could add PayPal with the normal bank feeds so if I link to a bank for example then I can search for PayPal and they have the PayPal connection here so you'd have to choose you know the appropriate PayPal but you've got your your PayPal connection possibly this way and down here here's the here's the PayPal.com right here and then they have a PayPal app so the pay if you go to the app store if I close this back up and I open up the hamburger and I go down to my apps down here and we search we go to the search field I'm going to close this up and I search for PayPal then we have the PayPal app here and the PayPal apps I think this one only has 15 so this one has the 2006 71 so I think that's the main one let's just take a look at that I'm not going to connect the app but then you can look at the you can watch the review on the app here and basically the app seems to basically act similarly as the bank feeds however the PayPal transactions could get a little bit more detailed when you look at them because they might charge fees for the transactions especially if you have different currencies of the transaction so they can get a little bit complicated if you deal with multiple currencies for example and you have fees related to the transactions so if you just use the normal connection of a bank feed I think it's going to be a little bit more streamlined that it might not possibly break out some of the added items such as fees and whatnot and and just record you know the net amount whereas I think the app is an attempt to do a similar thing as the bank feeds but give you more detailed information so you can break out some of the transaction in more detail now there's pros and cons to either of those methods right because just like the question as to whether I should connect PayPal or not if I've I've if I have a very simple system and I don't need to connect PayPal it would be easier not to if I just deposit it into my bank and I'm only using PayPal to collect the deposits I might not connect to PayPal because it's another step I don't need the app is a similar issue possibly right because it's going to give you more detail if you don't need that more detail then the app might actually be more complex than it needs to be so you might just go with the normal kind of bank feed but if you want to break out that more detail if that becomes important because the fees are messing up your flow or something like that the the app might be a better solution than connecting with the bank feeds so you could see here it's got three stars two thousand six seventy one on the rating you can look at some of the ratings down below so you've got some you know happy and some non-happy ratings to see which of those would be the best way to go so I'm going to close this out and I'm going to go back over here now we're going to imagine we connect kind of like the bank feeds in that we'll have an upload just like we did with the checking account so I'm going to go back into the transactions and we'll upload another card here for basically PayPal transactions so it will act like us to us as though another you know checking account connection that we would have so remember that the general process when you connect a new account is you can link to it here you can search for the account and then it's going to ask you to add an account for it and then you can set up the actual general ledger account the general ledger accounts are over here so let's actually do that first so I'm over here and I'm going to say let's add another account new and then I'm going to say let's put in place a bank type of account and it's going to be a we'll just call it a checking account and I'm going to call it PayPal PayPal and so there it is to do it and so I'm just going to save that and so now we have our PayPal account if I select the dropdown you can connect to the bank here or we can go again back over here now that we have the account set up and we can connect to the bank and then tell it to go to that account or we can upload from a file which is what we will do I'm just going to make some mock transactions over here in Excel that are coming that we're going to imagine coming from PayPal date and this is going to be the amount and then the description so let's say on one three to four let's say we had three thousand come in from three thousand from YouTube and then the bank feed data would have you know their bank feed jargon and what not within there let's say on three seven two to four we also had another one thousand one thousand come in and we'll say that that comes in from our our website so let's let's put it in from let's just say it's an online platform so we'll just say it's an online platform we'll just make it generic and this would be two four and then let's say we have on one fifteen another one thousand two fifty from our website and then we'll put some numbers behind it for the bank jargon and then let's say that we made some payments this is going to be one fifteen two four one fifteen two four now the date it's formatting funny or different let's do it like that and then so then let's say that we had some money going out on one twenty seven two four let's say we now we have money going out of two hundred and thirty two out back again out back stay house and then so something like that and so then so so let's go ahead and save this I'm going to say save it to do do do right before I save it I also want to make a couple more here I'm going to say let's say on oh two oh one two four we had a transfer out of here for let's say four hundred dollars that goes to the checking account and we'll practice our bank transfers here and let's say on two to eleven let's say two fifteen two four we have another transfer going out which was let's say four hundred and eighty dollars to the checking account and let's say on two twenty one two four we have another two hundred going out to the checking account and let's do a couple more just so we can practice our transfers on two twenty five two four we have another five fifty going out to the checking account okay so that should be enough to practice our transfers let's go ahead and save it and then I'm going to say file save as and we'll save it as a CSV file comma deliminated file and so okay and then we'll save it like that and then let's go into our bank feeds and I'm going to add another card so I'm in the bank transactions selecting the drop-down I'm going to upload a file upload it it's going to be to do a there's the one five one it's the PayPal file upload that one continue and this time I want to select the drop-down and not have the checking account but the PayPal account that we set up so it's going into the pay if you didn't have the PayPal account you could add it as you go but we added the PayPal account so then we there we have it is the first row a header it is one column that looks good this is the format of the date month month day day year year year year dates lining up description lines up amount those are our headers that are pulling in so let's continue and everything looks good so right the YouTube's an increase online platforms an increase our it should be out website but our websites an increase out back these are all decreases and in the transfer so that looks good let's continue and say so QuickBooks will import that's what we want you to do and then it says import completed boom it's been done all right sweet so we're gonna say then so here's gonna be the information so it looks just like you know the checking account now because we're using it more and more like a checking account and so now you can see that if if we is it is am I on the there's my PayPal this is the there it is it looks so much like the checking account I was in the checking account didn't even know it just like me being a poet and not knowing it you know so but any case here's the so so now you can see that if we waited till these cleared the bank these items are also gonna be on the checking account side and but but if when they clear the bank they're just gonna come from PayPal let me show you that I'm gonna say save file save as to do and I'm just gonna make this an Excel file so this is gonna be number two and then I'll put this is gonna be for the checking account so let's say on the checking account I'm gonna have these same four transactions but they will be positive you know how I can change that easily just a Excel trick for you I can copy that and then paste it special and then subtract boom now it's positive copy paste and then delete that oh fancy and then I could say from PayPal or PayPal transfer right boom so I'm gonna save that to do it and then I'm gonna file save as as a CSV file you will have these files if you're using if you have access to these so a CSV file these valuable files and then hold on it says do you want to replace it as a CSV file bank feed number two I'm gonna say it let's say make it number three I thought it was an Excel file before let's save it number three and then okay and then I can go back in here and this time I'm gonna put these into the checking account so I'm gonna say as though they float into the checking account upload from file upload and here's the new the newbie is number three this time why is it up here instead of down there I don't know I think that's the one I think that's the one and then I'm gonna say continue put this one into the checking account boom it's gonna be yes columns one date formatted date date description description amount amount movie be in got two letters for you be in be in so this is going in from PayPal when we transfer it so that looks good let's do it and see if it works so it's gonna transfer four of them import complete all right then that's what I'm talking about all right so then we can see down here that of course as it hits the bank it's gonna be paired to what happened over here on PayPal because it sees them both it's not matched because matched if it was if it was matched that would mean it's matching to a transaction that has already been in that has been imported already these are both in bank feed limbo neither one of them have been connected to our actual financial statements yet now if they if I didn't have PayPal then what would happen I wouldn't have this tag and I would only see it come through the bank over here on the deposits which I could just record is revenue when they come through however I don't have the detail I can't see what the revenue was for this way it might not matter if there was only one source of revenue and I knew it was all coming from YouTube or something right that I could just call it YouTube revenue and I wouldn't need the PayPal account but in our case we had multiple revenue sources here so that might make it worthwhile to connect because now I can distinguish the PayPal from my website because that will come through the bank feeds on the PayPal side and because I'm actually using PayPal to spend money then I don't know if Outback Steakhouse takes PayPal but but if I'm spending money on PayPal then I'm kind of using it like a checking account and you would think I would need the more detail in there and again if you were doing transactions that were in another country or something where PayPal there's going to be fees for the currency transfers then then you might you might have more detail with regards to the fees where if you wanted to break out those fees in their own account it might be worthwhile to have another app right that could break out the fees which may or may not be useful to you you might just say I don't really need the fees are kind of maybe in material with regards to the be nice to break them out but maybe it's more complexity in the system than I need so so so that those are the trade-offs that you have to kind of think about so we'll record these transactions and think about those bank feed transfers in essence between the two bank feed files and future presentations as we do we'll see the difference between using an expense form to record a transaction versus a bank deposit form versus a transfer form and what we've already kind of seen that with a similar form which is the pay down credit card form all of these forms could be used to record the same kind of transaction going from PayPal to the checking account for example and so we'll say why would one be better when would you want to use one versus the other what's the difference between those forms we'll get into that in more detail next time nothing new has happened to our our data on the balance sheet income statement or the trial balance which is just the balance sheet on top of the income statement as of yet because this data has just been pulled into what I call bank feed limbo PayPal bank feed limbo that is and we still need crucial information before we can pull it in here as with normal bank feeds the one piece being the mandatory piece and account we need to assign it to an account and we'd also would like to assign it to a customer or vendor whether it be deposit or a decrease