 QuickBooks Online 2023 Paypal Bank feeds import data to QuickBooks. 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 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 our bank feeds 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 window 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 where 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 compare and contrast the two views with the cog drop down and switch the view down below. We're going to be duplicating some tabs to put reports in like we do every time right click in the tab up top to duplicate it right click in the tab up top once again to duplicate it back to the tab to the middle and reports on the left opening up the balance sheet the balance sheet yes the balance sheet and then if you look at the business view by the way the reports are located in the business overview and then the reports that's where they're at over there. Let's go to the tab to the right and then also down to the reports open up the other financial report the income statement or profit and loss or P&L whatever you want to call it let's change that range I'm going from 0 to 0 1 0 2 no 0 1 0 1 2 2 tab 12 31 2 2 and then run it to refresh it and then tap to the middle close the hamburger scroll up to the top change the range 0 1 0 1 2 2 tab 12 31 2 2 tab and run it to refresh it where are those bank feeds located let's go to the first tab to find those because that's where our focus is banking on the left hand side bank feeds up top that's where they are what if you're in the business view though you know like what if I'm in the business view don't worry then they're down in the bookkeeping tab and transactions up top and the bank transactions so you could find them if you're in that view to no problem so last time we've been connecting our checking account and then we connected our credit card account so we've got the bank feeds set up the next question is well what if I have like an intermediary type of account specifically PayPal or PayPal account for any product now PayPal is kind of an interesting one because it used to be used as just like a facilitating type of transaction to receive payments and whatnot a lot of times for a lot of businesses that they would then be able to then transfer into the checking account but more and more of these days the PayPal account is becoming like another checking account because people are paying expenses and whatnot business expenses out of the PayPal account so there's a couple different ways that you can deal with PayPal one is that you can connect it like in essence a bank now there's apps for PayPal as well that might give you some more detail in it we might dive into that maybe in future courses but the the two options we're thinking about here is one maybe I don't want to connect the PayPal because it's more complex and maybe I just want to keep my checking account or two maybe I do want to connect the PayPal as baby basically another another checking account so when might I use you know either of those two options now note the PayPal transactions when you transfer from PayPal into the checking account you will of course see and your account on the checking account right so if you had a situation for example where all of your money is going through PayPal from like YouTube or something like that it was YouTube revenue and you know it's just one source going through PayPal you're not using PayPal for anything else you're not using it to pay stuff with you're just taking the PayPal as a function as a means of collecting your money from some gig platform well in that case maybe it might not be worth connecting the PayPal because you could just get the money from PayPal and then transfer it to your checking account and although the checking account then will show as a transfer and I'm not going to see in the bank detail that this came from whatever it came from like YouTube revenue I know that I use PayPal only to collect my money from YouTube revenue or whatever Amazon or whatever platform that I'm using and that could work quite well if that's like your only source of income however if you've got multiple sources of income like multiple people or platforms or whatever are paying you through PayPal then if you wait till you transfer it over to your account and record it as revenue it'll be more difficult to distinguish the different income sources so you're not gonna be able to make a different kind of income account over here if all of my income sources here went through PayPal then I couldn't really say well this is from Amazon versus Audible versus YouTube or website or YouTube because it would all be kind of mashed together when I transferred over and it would show up as just one transfer so that might be okay you might say I don't care it's just my revenue account I'm just going to call it revenue whatever that's easy so you could do that but then you'll lose a little bit of added detailed information which might be worth the added problem or issue of connecting to PayPal which is a little bit more work but gives you a little bit more of that detail and then what will certainly most likely cause people to need to actually connect to PayPal is if you're holding on to money in PayPal so that you can pay off your expenses out of PayPal because that's easy to do it's becoming easier and easier to pay things through PayPal which means PayPal is now being kind of like a checking account because it's not just a means to collect your revenue anymore it's now used as a basically a receipt and payment kind of thing so that means that what I'd really like is to have it in here as another bank feed so I can see my expenses or the payments that I'm making as well as the revenue be able to distinguish the revenue and be able to categorize the expenses in the same fashion as we've done with the checking account and the credit card account now there's also other kind of intermediary platforms you might use like a stripe or something like that but some of the other ones aren't the same as PayPal in that they stick to just really kind of the transfers of money as opposed to you might not be paying your expenses with them so if you get paid through stripe or something it's likely that the stripe is just collecting your revenue and again you're faced with the same situation you're like well I could just record all my stripe income as it comes in as just income from whatever source I know it came from say a website for example so you got you got paid through a website for things you're selling on your website maybe that's good enough for your information to record your income and your deposits when they come through to your checking account but you might want the added information that's collected from stripe such as all the customers that bought stuff from your platform and again you really want to think about that to say do I really want all that information or not because you because if you pull in you could look at applications that pull in all the people that paid you the other information from like a stripe for example but if you sell a whole lot of volume of small dollar amount things you might and they're only one time sales you might not want all that information other than their email address for your mailing list right I don't I might not want in my Quick Books account thousands of customers for that are one time customers you know I just want the mailing list right so in that case so you really want to think about do I really want to go through these other apps and pull all that information into QuickBooks or is that just going to load down QuickBooks and not give me any more added value so with regards to PayPal I would think that if you have multiple income sources and you're paying out of PayPal using it as a checking account then linking to it like a bank feed might be a worthwhile activity then we're faced with the same kind of questions well how do we link to it there's two ways we can do it we can link directly to PayPal with with an online link or we can download the the information from a PayPal however PayPal doesn't have as many sources to download so for example if I was to hit the drop-down and say that I want to upload from notice we have all these different file types we've got the dot CSV we've got the deep dot Q FX the dot QBO this one the QBO is the one that usually if you're going to upload the information from from like a checking account or a financial institution that you would use most financial institutions have that but I don't think QuickBooks or PayPal does yet PayPal does have the dot CSV file I believe that you can download but even that is going to be clogged up with a bunch of garbage in it we'll take a look at it in a little bit more detail in a second so you'd have to delete a bunch of stuff to do that so what you would really like to do is get a direct connection most of the time to the PayPal that would be the easiest thing to do but again if you're going way far back in history you might not be able to go far as far back for example with the first connection to PayPal so if you're trying to reconstruct like a whole year or multiple years it might you might have to basically download the dot CSV file and then connect to the bank so if you're connecting directly to PayPal and you can go you could go to the to the link account right here which if this was the first time you're linking to it that page might look different but most people would have already linked their checking accounts and then they would go into the link PayPal and you see down here they've got connect to PayPal so you can connect to PayPal and then you can go through the setup process to verify your account you might have to log in to PayPal to connect it but the setup process like with the checking accounts and credit card accounts is usually fairly easy that's kind of like the easy part and then you're going to be overwhelmed with all that information that comes in from bank feed limbo that we've talked about before the checking account and the other and the credit card account so for our practice problem I'm going to pretend that we downloaded this information from PayPal and upload it once we upload the information whether we upload or whether we connect to the bank will be in the same spot in essence bank feed limbo so this is a dot CSV file and so you can see I have I've actually trimmed it down already to the three fields so I believe if you download directly from PayPal you can download as an Excel file which might be the easiest thing to do because you're going to have to trim down all the data in the file and in the Excel file you'll have all of these other fields that that PayPal gives you that you don't need and then you can just select all the fields that you don't need and highlight them right click on them and delete them so that you're down to only the fields you do need which are the standard fields to upload which is a name a date field a description field which often includes like the name of the person that's paying you or that you are paying in like the bank detail the jargon and then there's going to be a number field or two number fields if you're using one number field positive numbers are increases negative numbers are decreases to the PayPal account I believe that's how the PayPal data is spit out on the Excel file once you've formatted the Excel file then you can save it as a CSV because you can't upload an Excel file you can upload a .csv if you have an Excel file and if you want to make your own Excel file just to practice with you can practice with it you can just type this into Excel something like this and then you can say file save as and then browse and then I'm going to save it as not an Excel worksheet but a .csv file so something like this or I think I used that there's another .csv it's a CSV file that's the point this one is the one I use I believe so that's what you want to save it as and then when you open it it'll look like it'll open with an Excel file but it'll be a CSV file which is a compatible file to upload it's like a like it'll open like an Excel file with all the formatting stuff in it so there's my file I'm going to upload that then to QuickBooks as another account and then we'll be in the same kind of situation as if we connected and so I'm going to say okay let's go drop down let's go upload file upload file and I'm going to just select it from the desktop it's on the top of my desk where it's nice and easy to find but you've got so much junk over there how can you find anything on top of that desk bank feed paypal paypal payup pal alright so there we have it we're going to say boom next and then an account so I don't have an account set up yet so I'm just going to create an account as we go on the fly we're flying right on that little flies back we're going to do it on the flies back which is hard because you have to have good eyes because flies are small so we're going to do it right on the fly it used to be a checking account and then I'm going to call this paypal paypal and then a sub account I think I made a cash parent account so it's a sub account of the cash parent account and when do you want to start I'm going to say other and I I believe the data started sometime last year so I'm just going to say August obviously this would be quite important if you're linking to the bank so that you pull in the proper date I think let me just make sure what happened here other I'm going to say let's make it just one month prior to that just to be super sure what your account balance so it might make that beginning account balance when I record it I'm going to deal with that later so I'm not going to worry too much about the beginning balance I'm going to deal with that that's my beginning balance bank reconciliation kind of situation we've talked about in the past I'm going to save it and close it and it looks movie B to the end so let's say let's continue and so select yes the format so is the first row of your file a header is the first row a header I don't think it is right because it wasn't a header I didn't have any headers so how many columns how many columns show so how many amounts so we only have one column that shows amounts instead of increases being one and then decreases in the other and then what's the date format used used I think I'm using month day and year like that and then the date field is going to be column one where it has the date up top so I'll say yeah the description is going to be that one column two with the teachable and I'm just mapping out and column three is of course the amount so if I had a header field then of course I can tie out to the header but I didn't have a header I just have this straight raw data raw data just like I like my clams or something I don't I don't know what a lobs oysters oysters raw eat them raw I don't really eat oysters I don't know what I'm talking about so I'm gonna so I have all of those that looks good I'm gonna pull them in it didn't like these two what was the problem what is the problem man with those two it didn't like the increases I think I have to have something in there on the description that's why so I'm gonna say let's remove let's close this out I'm gonna say no no you guys have rejected my data I am not I'm gonna go back to PayPal and that's not acceptable that's not acceptable I'm just gonna add like a description on these I think that's the problem I'm just gonna say this is a D for deposit and that should do it so let's close it save it and let's do it man let's save it as a number two and so there's PayPal number two that I have made the adjustment on all right you better recognize you better recognize now those deposits are important those are like the main thing that's what I'm doing this for Quick Books all right upload from a file and then I'll connect this thing this is gonna be PayPal number two boom let's do it again let's do it again I'm not it's not a problem I'm not upset or anything just cuz Quick Books is being stupid is the is the first row of your file a header no it's not column one column and then down here it looks like that okay just like last time it's the same thing date all right and then description is that and then the amount okay okay Quick Books are you happy now so there that was the issue I have solved it all right let's go and continue Quick Books will import 15 transaction using fields you choose do you want to import yeah I do let's do it so import completed both and now we've got another item in Bank Feed Limbo it did not put a beginning balance so we could do the same reconciliations with PayPal PayPal you might when you first look at it you're like it's not the same as a checking account it's kind of weird but it does give you reports because you kind of look at a PayPal just like a lot of people look at their checking accounts and they say well this data in the checking account I can see it real time so I don't need a bank statement but you still want to have the bank statements because the bank statements have that very delineated cutoff helping you to do the bank reconciliations so you still want to do the bank reconciliations like with the PayPal which however should be easy once again because we're probably going to be now after we get that first bank reconciliation done we have that beginning balance issue it should be just like kind of like the credit cards where we're gonna basically do everything from PayPal you know we're not we're not gonna enter the data on our side and then verify it to PayPal as we might do with some items in the checking account like deposits like checks physical checks that we write with PayPal all transactions were probably going to be electronic and therefore we're going to depend on PayPal to record them in our system and therefore the bank reconciliation should be easy but now we've got this information in bank feed limbo now which is what I would call is to hasn't been pulled into the promised land to help us to create the financial statements or double check the financial statements that we have created it's over here at this point in time and of course one of the major components are going to be these transfers that we have from PayPal that are that are also going to be on our checking account hopefully deposits into our checking accounts we've got those inter company kind of or enter bank feed to bank feed type of transactions in a similar fashion as we did when we looked at the credit cards so in future presentations we'll just populate and add this PayPal information into the system it should be you know routine same kind of thing except for a lot of small businesses the PayPal might be more the revenue side of things because you might be simply I mean a lot of people at least I started using PayPal as a means to collect revenue on these online platforms right it was one of those means to do that so you might have more unlike the checking account you're probably gonna have more decreases to the checking account expenses on the PayPal you might have different categorizations of the revenue and then you've got of course that pairing kind of thing so that's what we'll do in future presentations it will be great you will not want to miss it and so tune in next time and we'll see you then