Paypal Sync and QuickBooks Online
Paypal sync and QuickBooks Online can be frustrating. If you are unfamiliar with the app and how it works, you can find yourself in a bit of a mess. It may leave you like this man, wanting to scream! If you use sync and import, you do not have the ability to exclude transactions. They all just flow in in the background.
And that is the big problem with this app is that it runs in the background. So you cannot view the transactions like you do in online banking feed. They just come in. So what do you do and which version of importing from Paypal should you use?
If you use Paypal for Sales and Expenses, Stop right here and choose to import transactions using bank feed method, formerly called Paypal Connect.
Perfect Scenario #1 for Paypal App
You only use Paypal for Sales transactions.
It will bring in the details beautifully. If you want to move money to the bank account as a transfer to it from Paypal, I recommend this and pay for your expenses through your bank account only.
Perfect Scenario #2 for Paypal App
Only use Paypal for Expense transactions.
You transfer from your bank account to Paypal and use their debit card system for expenses. Paypal to pay your expenses works perfectly. Transfers from your bank account to fund these purchases also flow in accurately.
So Scenario #1 is more common than Scenario #2. This app works as designed if you are using Paypal for Sales or Expenses, not both. If you do use is primarily for Sales and only 1 category of expense, it works well too as you get to pick that one expense in setup. If you pick nothing, it goes into uncategorized expense. Not optimal. But you will see it when you review records.
This video walks you through the steps of using the app. One word of caution, if you have to import 3 mos. or 7 mos. or any odd selection of dated transactions, you may want to use a combination of both the bank feed version first (more versatile). You can bring in the transactions to the bank feed, remove them quickly, and then enter them. Then switch to Paypal sync for more ongoing purposes.
If you would like any future video on this topic or any other QuickBooks online topic, feel free to share your thoughts on my Facebook page.