In this article you learn how to “Record PayPal Transactions in QuickBooks“. Paypal is one of the best money transfer platform used worldwide. If most of your transactions go through Paypal then you would need to have a well trusted platform that will help you in bookkeeping. Well that’s where QuickBooks pro comes in. This accounting software integrates well with Paypal and helps you save much of your time in manually recording transactions.
Here are the Steps on How to Record Paypal Transactions in QuickBooks:
Learn how to get started with QuickBooks..
Total Time: 20 minutes
🔹 Firstly you would need to login to your paypal account
🔹 Select a date range
🔹 Select the my account tab and go to history then download the history
🔹 When you get the downloading options select the .iif format.
🔹 Then click on the download history.
🔹 Keep in mind when you are filling the account name and the other details fill that details only which appears in the company account.
🔹 Then save the .iif file.
🔹 Then from the QuickBooks file menu, select utilities import the IIF files.
🔹 Click on the .iif file and then open it.
🔹 Congrats you have finally imported your Paypal transactions in QuickBooks.
Though the above steps are good enough to help you record your transactions. But incase if you face any issues IIF import error in QuickBooks than simply Contact the QuickBooks support toll free.
Before you download paypal transactions to QuickBooks, please don’t forget to setup your accounting software to handle paypal transactions. For this you would need to create certain accounts in your QuickBooks. To do this, follow the steps below:
Setup QuickBooks to Import from Paypal:
Create new bank account named “paypal account” in QuickBooks: You have to create this account so that you can keep a track on the online transactions. With all the transactions for your bank accounts you can even keep a track on your business activities.
Create expense account named “paypal fees”: In this account all the expenses paypal would be saved and you have to be sure that this account should not be used as the sub account otherwise it will be turned into bank account when it is being imported.
Create income account named “paypal sales”: All the sales would be saved in this account. Be sure that income account should not be used as the sub account otherwise it will be turned into bank account when it is being imported.
What is .IIF File within Paypal:
.IIF is the file extention given to files that can only be opened in QuickBooks. Because of the popularity of QuickBooks pro the accounting software used world wide, paypal can save files in this format if needed. To import the transactions to your QuickBooks you can use the .iif file within paypal. This imported file than can be used in QuickBooks for more editing.
When you import the paypal transactions using .iif then the credit amount is recorded on income side of QuickBooks and debit side is recorded on the expenses side.
If the customer’s name is being imported with the present customers name in QuickBooks and if in any case that the customer’s name does not match with paypal then it will be recoded as a different customer. Thus always keep the name of your customers “same” as this makes easy in maintaining books.
Use .CSV File:
If you are interested in mannually entering the transactions that didn’t import that you would have to download the paypal file in a .csv format.
Steps of how you can Import .CSV for QuickBooks:
- Log in to paypal account.
- Goto my Accounts tab and choose “History tab”.
- Select the date for which you want to download data.
- Then click on the download history.
- Now your file will be downloaded.
- If it does not happen immediately then paypal will send you email notification notifing when it will be done. This usually happens because of the large file size.
By now you would already know “how to record paypal transactions in quickbooks”. But if you want quickbooks to automatically monitor your paypal transactions then you would need to sync both of them together.
How to Setup Paypal in QuickBooks PRO:
- Open QuickBooks and select “Apps tab” on the lower left panel
- Click on “sync with Paypal” link that appears.
- A window will now appear, click “Get the app”. This will permit QuickBooks your access your Paypal account.
- You will now have to permit Paypal to connect with QuickBooks. This you will do by logging into Paypal and authorizing Paypal.
- Click ok to complete the sync. on your QuickBooks account.
- Set up QuickBooks for Paypal. This you will do by providing your Paypal details. Complete the steps that follow along.
- Click “Done” on the confirmation page and you will all set and done.
Thus from now on, you will need not to update your Paypal transactions manually as these will be done automatically. Paypal is the world’s renowned money transfer platform that is used by majority of people. If you use paypal and transfer payments more frequently then QuickBooks pro would be a boon to you. Its integration is seamless with paypal and ease of use only adds to your benefit.
Still facing issues related with QuickBooks here is QuickBooks 24/7 Support Phone Number.