 QuickBooks Online 2023. PayPal bank feeds, data input, and transfers. Get ready to start moving on up with QuickBooks Online 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. 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 our bank feed practice file. We started up in a prior presentation using the 30 day free trial. We also have open the free QuickBooks Online sample company. If you want the to open at the same time, we suggest using the Incognito or another browser to open the sample company. You can open Incognito if using Google Chrome by selecting the three dots in the browser Incognito window typing into the search engine QuickBooks Online Test Drive. We're using the sample company to compare the accounting view, the one the bank feeds practice file is in, and the business view, the one the sample company is in. You can toggle between the two by going to the cog up top and change the view down below. We're going to be duplicating some tabs like we do every time right clicking the tab up top, duplicated, right clicking the tab up top to duplicate it. Then back to the tab to the middle. We're going to the reports on the left and we want the balance sheet. By the way, if you're in the business view, where are the reports business overview on the left and then the reports. Okay, now that we know that let's go back to the tab to the right and then reports down on the left hand side this time the profit and loss or income statement. Close up the boogie the hand boogie that is hamburger 010122 tap 123122 tab running it, which is refreshing it. Tab it to the middle close up the hand boogie change the range from 010122 tap 123122 tab and run to refresh. Then let's open up the bank feeds and the first tab because that's where we're working these days with the bank feeds. That's in the banking on the left. Nice easy to find banking up top. If you're in the business view, by the way, it's a little bit more buried down here in the bookkeeping and then in the transactions bank transactions. That's where they are in the business view. So you know that as well. Alright, so in prior presentations, we set up as most people probably would do the checking account in the bank feeds. First thing that comes to mind when you're doing the bank feeds and then we said, hey, we could do the same thing with the credit card. And after we said that we just did it. We went ahead and connected the credit cards and we looked at the enter bank feed to bank feed transactions related to them. But then we were like, well, now I've got PayPal. PayPal is like not only am I getting stuff from PayPal and using it as an intermediary to get the money into my checking account. But now I'm using PayPal as a checking account. So QuickBooks Online allows us to connect to PayPal. If you're using PayPal in that way, then you might want to then of course connect to PayPal possibly treating it in essence as another bank account, which in essence basically is at that point. So that means we've got the information from PayPal now that are in what I would call like the Bank Feed Limbo down here. Just like with the checking account, most of these are going to be increases for a lot of businesses because you might use PayPal to collect money from platforms because you have no, that's the way to do it apparently for some time. But you might also have expenses that you're more and more possibly paying out of the PayPal as well. And then we've got the transfers that are most likely hopefully going from PayPal to the checking account. And so we've got those inter-company kind of transfers. So I'm just going to add these fairly quickly because we've seen them in the past. Remember that if you got paid like this one's from Udemy, if you got paid everything from like Udemy or one platform YouTube or something like that, then you could wait till they clear, till you transfer them from PayPal to your checking account and it wouldn't say that it came from the source. It wouldn't be in the memo that it came from YouTube or whatever. But you would know that because all your PayPal stuff came from one source and therefore you can just add it when it hits the checking account. But if you're holding on to cash in the PayPal account so that you can pay expenses or something like that, now you've got a situation where you probably want to connect the bank feeds to PayPal to get that added information. If you have multiple platforms paying you, then you also might want to connect to PayPal to get the added information of breaking out the source of the revenue. Now we're going to assume that these sources of revenue for PayPal are similar when we're looking at our revenue cycle that we're in like the gig work scenario. I'm waiting till something kind of clears the bank recording the revenue when it does with a deposit form with the use of the bank feeds, which means I'm not using the sales receipt or invoice that forms designed to record income, losing then a little bit of detail on the sub ledgers breaking out income by customer, by item, by thing that we sold. So therefore I might just do what I don't normally do if I was using the full service system and just record an income account called the person that paid me or the institution that paid me like you to me income or pay or, you know, YouTube income or whatever. And so that's what we'll do here. That's what we'll do. So I'm going to go on over and just say, okay, let's go into this one. And I'm just going to open it up and I'm going to say this is going to be a category. Okay, I'm just going to copy the you to me in the memo, put that in the customer making a new customer for it. Just as we have seen in the checking account, I'm going to make a new account for it. Naming it after this particular customer due to the what we just discussed. I'm going to add it and I'm going to make it an income account. Money's coming in. So it's in come and then it's going to be other primary source. Let's say I'm just going to call it you to me income. Okay. You to me income. Boom. Let's save it. Let's make a rule for it and just have our standard rule just like we did before. I'll just call it the you to me rule. And then I'm going to say that there it is. And let's take it. I like taking it from the bank text you to me. If it contains you to me, then apply the rule deposit you to me income and looks good. I'm not going to automatically apply it. I'm just going to add them because I want to double check them at least for the first couple of couple of times out. So then if I sort up top by the ones that have been recognized, six of them have been recognized. There they are. I'm just going to select all of them or you could select them that way or holding down shift and pick them up. And then I'm going to add them and accept them. So accept. So then if I go to the tab to the right and running it. So now we've got in the PayPal account. We've got transactions in the PayPal account going into it. And we've just recorded these deposits. If I go into any one of them, they are recorded using a deposit form. Just as we would expect after seeing the checking account transactions in a similar fashion. Let's go to the tab to the right and the income statement running it to refresh it. So we're looking at fresh stuff. I don't like looking at moldy old reports. It's like fruit. They spoil their gross when they're old to get them out of here. Any case. Udemy income. There it is. So there it is on that side. Normally income is recorded once again with a sales receipt or invoice, not a deposit form. But if we're using this kind of system just to platform gig work situation, then we might just use the deposit form. Although losing some added detail and data like the sub ledgers, it's quite useful and easy. And therefore it's a fair trade off. So okay, let's just do the rest of them. I'll just do this one. Skillshare. So I'll just copy that Skillshare customer and boom, save it. And I'm going to make a new account just called Skillshare income because it's another platform thingy. Let's make it a income account. And let's make it other primary. And let's just call it Skillshare income or skill success income, whatever, you know, that's it's different. That's different. I know, but I'm just just practice here. So we're going to credit and create a rule. Let's make a rule. I'll make it from the text as long as it contains skill success. I want you to do what I just said to do, put it into that new income account. I don't want you to apply the rule automatically. I want to double check it. And so let's do that. And then if I was to go up and say, I want to check out the recognized boom, I'm going to select them. I know I'm doing this fairly quickly, but we've seen it in the past. So I'm just want to show you how we can do a few of them in a bit more rapid fire fashion. So now we've got the checking account, which I'm sorry, not the checking account. We're talking pay to the pal account, pay to the pal. So then we've got these two deposit forms. Everything's a deposit because that's all we've been dealing with thus far. Tap into the right, running it. And now we've got another income account for this one. I believe this is the one we just made. So there is that. Let's keep it rolling. Keep on rolling, rolling, rolling. I'm going to close up my filter and let's do this one teachable. So teachable, whoever they are, that's like a, let's copy that and put that here and boom customer services. Another ad and I'm going to make this income account income boom. And then it's going to be another primary income teachable income because teachable paid us. So we'll say save it and add the rule. Every time it's going to be a teachable rule money in. If you see in the text bank text that contains teachable, then apply the rule, put it to that teachable income account, poor five or if you please. And then we're not going to, I'm just going to double check it. So I'm not going to auto add, not going to auto add. And then I'll just recognize the recognized ones and then boom, boom, and accept. And then let's just check it out on the income. Let's just check the income statement side of things this time income statement, teachable income is not a plot and whatever. So now we're going to go back on over and remove this rule. And then now we've got these transfers. So the transfers are quite we talked about the transfers between when we looked at the credit card, which is usually going to the when you pay off the credit card. Usually you're going to say the checking account is going down and you pay off the credit card and QuickBooks made this special pay down credit card form to do that. So let's just kind of recap. Now we've got like a bank feed to bank feed transfers. Now hopefully most of the time when you're talking about PayPal, if you're using it as a collection form, the transfers are hopefully always going to be going from PayPal to the checking account, right? It's going to usually because you're using PayPal as a means of collecting from the platforms primarily. So then, like you might say, OK, well, if I'm going to do that, if I think about it from the PayPal side, the form that you might think about using would be like an expense form, right? Because it's a transfer decrease in your checking account of PayPal. And you could use that, but it kind of causes a little bit of a funny issue because if I was to transfer from PayPal with an expense form to the checking account on the PayPal account, it would look right because it would be like an expense form which would decrease it. But in the checking account, you would have an expense type of form that would be acting as a deposit in here. And that doesn't look right. So if I was trying to sort by the things that are increasing this account, I usually wouldn't include an expense form. So it messes up the sorting, you see? And then if I went over here and I said, well, what if I thought about it from the checking account side? I would think, well, I'm going to get a deposit over here. So why don't I just record it from the checking account as a deposit form, which you could do. But then again, it records the same transaction. The checking account would look correct then because you'd have a deposit form. But then when I look at the detail in the PayPal account, which is like another checking account, it would have a deposit form that's decreasing the account, which would again mess up the sorting because usually if I want to sort by transactions that are increasing the account, I would choose deposits and decreasing the account, I would choose like expenses. And so that messes it up. So that's why you've got like a transfer form that could be an increase or a decrease. So that's going to be the, we'll use the transfer form. So notice that's what it did here. You can go to either side of the transaction and it's recognizing it based on the amount and the date. And it says it's paired the transaction. So I can do that here, the 5000 on PayPal side, or I can do it here, the 5000 over here. And it recognizes and it's recording it not as a category, but as a transfer. So that's the right way to do it. That's the best way to do it. Let's show that and then I'll show the other two ways that record the same thing. But it records it in a way that's not exactly ideal, although the same transaction. So if I record either side of these as a transfer, if I just add this, then it's going to pick up the other side. I believe automatically. So if I go back to the PayPal, it added it automatically. If I go back to the, to the balance sheet and look at the detail and the checking account. Now I should have a transfer that is increasing the account balance. See, so now it's in there with a transfer. So that or this is a transfer decreasing the account balance. And this is, oh, that's not the right one. So it should be a transfer that's increasing. Here it is. There it is. There's the transfer that's increasing. So notice a transfer form can be used to increase or decrease. So those are like the tricky forms, but you shouldn't see a lot of transfer. So if I was trying to look at the things that increase my account now and sort, sort by them by going to like filters. Which is common to do. And I say, I want to look at everything that increases cash. Well, I would have to pick up the deposit forms. Obviously, then I might have sales receipts and, and receive payment forms depending on what I'm doing. But then I could also have the transfers. And so if I run that, so now I just kind of make sure to pick up those transfers. Now I could have some transfers that decrease the account and that would mess up my thing. But if I'm looking at PayPal, most of the transfers will increase the account, right? Because if my major focus is on my checking account and the PayPal account is just there to collect revenue, then it's always going to be a transfer from PayPal to the checking. So when I'm sorting my detail, I can kind of usually think of the transfers as an increase to the checking account. If I'm sorting, if I need to sort in that way. And then in PayPal, the transfers will always be a decrease. Because I'm always, you would think I would always be transferring out of PayPal to the checking account. So if I go into it, there it is. Now, what if I didn't use that form? I could say, well, are the other forms wrong to use? Well, they're not exactly wrong because they'll still record the thing. It'll just, it'll just won't have the easiest format to sort your data by. So let's say that if I went into PayPal and let's just pretend I recorded this one just for the, just to show. And let's say I categorize it instead of as a transfer. I categorize it over here as like an expense. So I'm going to say it's an expense form. The other side is going to go to the checking account. And that's it. So instead of a transfer, a transfer, we've recorded as a category. Since this is a money out, it'll be formatted with an expense form. So let's add that and check it out just to see what the difference is. If I go to the checking account, notice that it recognized the match, but it didn't record it automatically this time. So I'm going to go into the, I'm going to go into the checking account and say it found the match. So that looks good. So I'm going to go ahead and match it. This won't record anything new. It'll just say, okay, I verify that it has happened on both sides of the transaction. And then I'm going to go back on over and say, okay, what happens then? Let's run it and say checking account now. If I go into the checking account, I'm going to have this 999 as an increase, but it was done with an expense form. And so that messes things up. You see, if I was trying to sort by transaction date, transaction type, which is common, because if I'm trying to sort by all the increases, I don't want to include expense forms because that usually is a decrease. So it'll include all the things that are decreases, right? So that's why it's kind of messed up. It's not, it's not the end of the world, but it kind of messes up your detailed sorting in that way. So the transaction is the same. The accounts are affected the same. And if I go into my PayPal and go into here, then it looks, it looks kind of correct because it's a decrease using an expense form, which is what you would expect, although it'll be the same expense form as every other outflow that you would use things to pay for normal transaction, like contractors or whatever and that kind of stuff. All right. And then, so let's do it the other way, just to finish, just to round this out. Let's say I think of it from the checking account side. And if I got, if I got money on the checking account, this, let's do the 20,000, I would think of it as a deposit. So if I go in here and I say, instead of recording a transfer, I'm going to categorize it because it's an increase. That means QuickBooks, you would think would categorize it as a deposit form. And so I'm going to say it's a deposit. And then the other side is going to go to PayPal, PayPal, PayPal, PayPal. So there, and so it should do the same thing, but now it's going to use a deposit form. So we're going to say, which will look right on the checking account, but not on the PayPal side. So let's save it and add it. And then I'm going to go to the, to the checking account and it found the match. So I'm going to say, okay, go ahead and match it up. That won't record anything new because I recorded it on the checking account side. It'll just verify PayPal has been finalized. Now, if I go into the checking account, let's run it again, running it, checking account, then I should have that 20. There it is right there. And it looks right because it's a deposit. So that looks good, although it's the same as every other deposit, right? But there's a deposit. And then, but then if I go to the PayPal account, which is like another checking account, I'm going to have a deposit that's decreasing it, which is weird. That's not how it should go. Why won't it go in there? There it goes. All right. So there it is. But it's a deposit form that's decreasing. So that messes up this account because if I'm trying to sort my cash over here by increases, I'm going to use deposits and this deposit decreased it. So that's the point. So when you're thinking about the forms that you're going to use, usually QuickBooks will kind of pick the right form. But remember that depending on what you're looking at, if you're looking at the checking account that you're putting the money into, your first thought might be, well, I should use a deposit form. But that'll look funny on the other side. Or you're going to say, if I'm looking at it from the account that I'm transferring from, you might use an expense form. But the form that will solve kind of a sorting problem is the transfer form, which hopefully the bank feeds will pick up automatically by just seeing what's happening. And all three will record the same thing. So if you're recording using the other ones, it's not the end of the world because the accounts affected will be the same. Transaction in terms of journal entry will be the same. But the sorting, as you can see, gets a little messed up because you can't sort by the forms that you would expect to be sorting from. So again, with PayPal, I would expect that when I'm sorting the detail in the checking account, then I would kind of like to have everything that's an increase be a deposit and a transfer or a transfer because every other account I have, these PayPal accounts, are there primarily to collect revenue that are going to transfer into the checking account. And then on the PayPal side of things, I would expect that all of the transfers would be decreases basically for the same reason because you could transfer money from the checking account to PayPal to pay out expenses. And if you're paying contractors and stuff, then you might do that. But if you're using PayPal as a source of collecting revenue from the platforms, you would think it would always be going the other way. And it's kind of nice just to sort your checking account detail because remember the checking account being the flow, the lifeblood of the company, meaning it's involved in every cycle that you're dealing with, means that it's going to have a lot of different transactions in it and be very important to kind of verify and check and reconcile with the bank, with the, you know, do your bank recs, whereas every other account has very limited transactions that are involved in them because the use of these other accounts are much more specific. The accounts receivables are going to go up with an invoice and down with a payment. That's just the way it is, right? Whereas the cash accounts got all these other stuff going on so you've got to have more detail in order to sort it. All right, so that's what we have thus far. Let's open up another tab and just take a look at the trial balance since we've been constructing a bit more with our bank feeds. And the trial balance is a report that I just want to suggest that people take a look at. So we're going to go from 010122 to 123122, run it. So this is the balance sheet on top of the income statement. So we've got our asset accounts being constructed. And if you could just see the delineation between like assets and the liabilities starting at accounts payable, there's our liability for the visa and then our loan payable and then the draws. These are equity accounts starting at draws down to equity and then our income statement, income accounts and then expense accounts and then other income and expenses down below. If you can see those delineations, then of course the trial balance is a lot more streamlined to look at as you're doing the data input and trying to verify what is happening as you enter the transactions.