@@5MinuteBookkeeping ...2 super quick questions, if you don't mind: 1. I had thought PayPal fees would end up going against the Clearing Account, but it seems with the Connect-Paypal app, they are automatically going to my Expense account, 'Paypal Fees'. Everything is balancing right, but just wanted to confirm I'm good there, yes? . 2. In your response below, you indicated the Paypal Holds-Releases should go to its own clearing account. My clearing accounts have been created as 'Other Current Assets', which I believe is from your guide. Do I create this one the same way then? I was thinking it would be 'Other Current Liabilities'-'Deferred Revenue', but guess not? . Thanks so much!! (Paypal is going to be a PIA in QBO, ha)
Great video! Thanks so much. What do I do with all the transactions marked as other things like "payment hold," "payment hold release" and "general hold release"? Are those also mapped to Shopify PayPal Clearing?
Hi! Veronica. Great job. We have managed to avoid overstating the Shopify Paypal income. But the process you outlined (which we managed to figure out before I saw this video) requires that we manually adjust each transaction. This seems to be a major waste of time. I hesitate to try and make a rule because I don't see anything that I can use for description or bank text. Do you know how we can create a rule? If I can't I am beginning to think that we might be better off NOT using A2X for Paypal and just establish a rule that Sales Receipts from the Bank get recorded as Sales. I know there is a timing issue here but we are under $1million sales so it will not be significant. Thoughts?
Hi Bob. At my accounting firm, we no longer use the Connect to PayPal app because it doesn't always sync correctly with QBO. We are now recording one monthly summarized journal entry for the PayPal activity using the monthly PayPal statement. I cover this workflow in my Shopify Bookkeeping Method course. I can also show you how to make the monthly journal entry if you book a paid coaching call with me. I don't have a free video or tutorial on this because it's somewhat involved.
The major issue i am having is that my paypal account isn't just used for shopify. It received income from other sources as well, as well as fees, and expenses. How in the world do we handle this? Very confusing
You would have to try to figure out a way to identify revenue from other sources vs revenue from Shopify. If you can, you should open a separate PayPal account so that you can separate your revenue sources.
Hello! I was wondering how we'd show discounts through PayPal in a journal entry? QBO already takes out the fees and if we just use the transactions that QBO puts in, then it's missing the discounts so I'm stuck on that. I've been trying to make manual entries for Shopify and PayPal so that I can include everything the entry needs. Thank you for your help!
Hi Rayanne. I can't really answer that question because I don't know how you are entering your Shopify transactions or whether you are using a connecting app to record Shopify transactions in QBO.
E-commerce accounting is very complex. If you're not using A2X, take a look at these videos: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-8klzPqyF_Ek.html ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-wrvwwAGA8nw.html ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Lj-in8ORCRQ.html
