Find out what your organization should do to report PayPal transactions on your books.
Hi, I’m Belinda Whitfield and today is Open Q and A Day. Today I’m taking a questions from my inbox.
My writer writes:
“Hi, Belinda. Our company has a PayPal account. I need to know how I should be recording the financial transactions on my books.”
If you have a PayPal account, you want to make sure that you are … First of all, you set up that account just as though it were a cash account on your books. You’ll record any monies coming in as in your appropriate income account for your deposits. Also, if you’re paying bills or making purchases online, you will want to record those payments as expenses.
Also, if you’re transferring money between the PayPal account and your other accounts, you’ll want to record those transfers. Finally, you’ll want to make sure that you’re doing your reconciling of that PayPal account. It’s going to be important for you to go online, download the activity for your PayPal account, and reconcile those balances on a monthly basis. If you should have any questions, visit my website, go to my Contact Us page, and submit your questions. Have a blessed day.