Why You Should Connect Your PayPal Account to QuickBooks

PayPal is a widely used payment platform, especially for small businesses. Keeping track of all the transactions can be overwhelming. Especially if you’re not familiar with accounting.

It might seem a lot easier to just log deposits from your PayPal account to your bank. 

It’s NOT!

If you’re only logging deposits you’re missing important information. Including individual income transactions, expenses, and PayPal fees.

This is one of the most common

I can’t tell you how many times I’ve been hired to help clean up a QuickBooks file. Only to find that the problem stems from an unconnected PayPal account. It can get messy fast!

Here’s a video where I explain why you should connect your PayPal account to QuickBooks and what can happen if you don’t:

Not sold yet? Here’s a few reasons why it’s a good idea to connect your PayPal to QuickBooks:

  1. Automated Record Keeping: Once you connect your PayPal account to QuickBooks, all your transactions will automatically be imported into QuickBooks.

  2. Improved Accuracy: With automated record keeping, it’s more likely that all your transactions are accurately recorded in QuickBooks. This will help you make better business decisions based on accurate financial data.

  3. Time-Saving: Connecting your PayPal account to QuickBooks saves you time by eliminating the need to manually enter each transaction. This means you can spend more time focusing on other important tasks, such as growing your business.

  4. Better Cash Flow Management: By connecting your PayPal account to QuickBooks, you can have a complete view of your financial situation. This will help you make more informed decisions about your cash flow.

Not sure how to connect your PayPal account to QuickBooks? It’s easy! 

There are two different ways to do it. You can connect PayPal like you would a bank account. Or, you can use PayPal Connect.

PayPal Connect allows you to download transactions as Sales Receipts. 

The blog post How to Connect Your PayPal Account to QuickBooks Online has detailed instructions for both methods.

If you choose to use PayPal Connect you may want to read How to Update PayPal Sales Receipt Mapping.

Once you have your PayPal account connected to QuickBooks you should reconcile the account monthly.

If you need help with that check out these two blog posts:

If you have a PayPal Business account please connect it to your QuickBooks!

If you need help cleaning up a QuickBooks with an unconnected PayPal Account. Or, if you need any help connecting or reconciling your PayPal accounts. Click the green button below and schedule a free consultation.

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This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Gentle Frog, LLC does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Gentle Frog, LLC does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers and viewers should verify statements before relying on them.

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Review Your QuickBooks

Are you a small business owner struggling to make sense of your QuickBooks data?

  • Discover how to spot costly mistakes in your bookkeeping and fix them quickly and easily.

  • Save time and money by streamlining your bookkeeping process and reducing errors.

  • Learn how to identify trends in your financial data so you can make smarter business decisions.

  • Get organized and stay on top of your finances by tracking expenses, managing receipts, and closing your books effectively.

Sign up now for this free mini-course and start mastering the essential bookkeeping skills that every small business owner needs to succeed!

FREE Mini Course

Sign up now and enjoy the peace of mind that comes with knowing your bookkeeping is accurate, up-to-date, and free from costly errors.

We won’t send spam. Unsubscribe at any time.