Do you get anxious when you think about doing bookkeeping for your small business? Maybe you’re just wondering, what is bookkeeping and how will it impact my business? Bookkeeping can be stressful because it’s hard to manage multiple payment systems and bank accounts.
This is especially true if you’re including PayPal transactions in your financial reports. Luckily, PayPal does have some bookkeeping features that can help you figure out what’s going on with your company’s finances.
Some businesses outsourcing bookkeeping services, and some manage their books on their own. No matter which category you fall into, it’s important to understand how to track PayPal transactions.
In the article below, you’ll find some information on how to account for PayPal transactions when you’re doing your bookkeeping. Read on to ensure you know about all the nuances of PayPal bookkeeping.
You Can Integrate PayPal With Other Bookkeeping Platforms
If you enter, “bookkeepers near me” into Google, you’ll likely find people who use Quickbooks for bookkeeping. If you choose to pay a bookkeeper salary in exchange for these outsourced services, you’ll need to provide the bookkeeper with your PayPal account statements.
Fortunately, PayPal does integrate with popular bookkeeper software tools like Quickbooks. You can read this blog to learn more about how to integrate PayPal data with Quickbooks.
Remember to Account For Your PayPal Balance
While many small businesses simply use PayPal as a transaction tool, some people use it more like a bank account. When you receive money from a customer through PayPal, you can either withdraw that money to your bank account or keep it in PayPal.
If you do keep money in PayPal, be sure to account for this when doing your bookkeeping throughout the year. Proper bookkeeping requires that you keep track of all your financial accounts. That’s why you don’t want to forget about the money in your PayPal account and realize you’ve made a mistake in your bookkeeping.
PayPal Allows You to Confirm Transactions
You use your credit card statement to confirm that you spent money. You can also use PayPal statements to confirm that you received funds.
PayPal allows you to view your transaction history to see when you received funds. You can also see when you sent funds or withdrew funds from your PayPal account. These statements will be useful when it comes time to do your bookkeeping.
Now You Know How to Use PayPal for Bookkeeping
PayPal is a useful tool for small businesses, and you must know how to account for PayPal transactions when you’re doing your bookkeeping. Using the information in this article should allow you to add PayPal transactions to your financial statements with ease. If you’re interested in getting more advice about bookkeeping and other small business practices, be sure to stay up to date with all the latest articles going live on this website.