Managing accounts, transactions, paying bills, and sending and receiving amounts used to be done traditionally. It was hectic for a business person to manage all transactions like income, expenses, etc., and for an individual to deal with an old paper method of payment system.
Nowadays old transactional methods have been replaced with an online payment system. These are quite popular worldwide. One of the popular online payment platforms is PayPal. This blog discusses how to integrate PayPal with QuickBooks and their benefits.
What are PayPal and Quickbooks?
Paypal is an online payment method and Quickbooks is an accounting tool. Both technologies help users in their own way. Users can integrate PayPal with Quickbooks for further benefits. Let’s learn it one by one.
About Paypal and its benefits:
It is an e-commerce payment system that accelerates electronic transactions or payments. It was established in 1998, by PayPal Holdings, Inc., an American Finance Company.
Benefits of Using PayPal:
- You can send and receive money in the safest, fastest, and easiest way.
- There is no requirement to maintain balance.
- While sending and receiving payment it offers cashback rewards.
- It makes secure payments throughout the world.
About QuickBooks and its benefits:
It is a software geared toward small and mid-sized business persons. It is used to manage their accounts such as tax filing, creating invoices, tracking income and expenses, etc.
Benefits of Using Quickbooks:
- Quickbooks is customer-oriented and it provides a user-friendly interface.
- QB offer integration tools to enhance their efficiency.
- Quickbooks monitored income and invoices helped in filing taxes and paid checks to vendors.
Various Methods to Integrate PayPal with QuickBooks Online?
Business operations can run smoothly which can be done by adding PayPal with QuickBooks. It is the best way to track and handle your business transactions. Here are some steps that will show how you can connect PayPal in QuickBooks:
Step 1. Connect to PayPal
While using the PayPal application (app), you are not able to see the duplicate and immediate status of the transactions. It includes temporary hold, reversal, and authorizations.
However, you can receive payments and these transactions can be easily managed with QB online.
Step 2. Set up to Connect PayPal with Quickbooks
You have to follow the below-mentioned steps:
- Sign in to your QB Online Account and go to the option “App” and then select “Find Apps”.
- Now search “Connect to PayPal”.
- You will see an option “Get the app now”.
- Tick the box with the appropriate file, then click “Install” and move forward by selecting “Let’s do it”.
- To extract all data from your PayPal account, authorize Intuit by selecting “Give Permission”.
- Enter your valid email address linked to your PayPal account then select “Next”.
Note: For those who didn’t have an account the option “To create one” will prompt out. If a new account is created, return to Quickbooks accounts and restart the connection process.
- Sign in to your PayPal Account.
- Now select “Agree and Connect” by authorizing the sync.
- After establishing the connection select “Return to Intuit”.
- From the PayPal transactions select The PayPal Bank and click on “Next”.
- For imported sales transactions, select the sales tax rate which will be applied to these transactions then click on “Next”.
- If you want to import historical transactions (up to 18 months) then select the date from and then select and click on “Done”.
- The PayPal connection list will be shown on your QuickBooks Bank transactions.
Step 3. Connect to PayPal for Your Client
Follow these steps for connecting to Paypal:
- Start with logging your QuickBooks Online Accountant Firm from where you can open your client’s book.
- Now go to the official website.
- Enter the details of your PayPal client.
- Now connect to the QuickBooks Online account of your client.
- After getting connected, the PayPal account will appear on your client’s “Bank transactions”.
Step 4. How Transactions Updated by App
- Go to “Transactions” and then select “Bank transactions”.
- Any transactions in PayPal will appear within 2 hours in the “For Review” tab. (The “Update” button will not update your PayPal transactions.)
Note: The app will update every 15 to 30 minutes.
Step 5. Match Items in the Connection to PayPal with Quickbooks App
Any product or service in QuickBooks is related to an income or expense account. When transactions are imported from PayPal, Connecting to PayPal matches the items on transactions with services or products within QB.
The matching criteria are based on item names:
- If it matches – It matches by using a product or service.
- If it does not – If it does not match then it uses the default item “PayPal Sales” and updates with a description of the name of the item provided by PayPal.
Benefits of Integrating Paypal with Quickbooks
There are many ways to get paid like you can create and send invoices to your customers from any device, anywhere and anytime with online payment options. There are various benefits to integrating PayPal in QuickBooks. These are as follows:-
- Increase Cash Flow: Creating invoices and getting payment is a time-consuming process. Online payments are done by using credit/debit cards and PayPal will reduce the time of customers while making payments. This is how it enhances cash flow.
- Secured Transactions: The transactions done using PayPal are more protected and secure. It monitors these activities to avert fraud and to keep transactions more safe.
- Setup Payment Method: You can add your payment method to your QuickBooks by taking simple steps.
- Payment Options: Adding PayPal to your invoices increases payment options. Customers can easily make payments by using it.
- Save Time: There is no requirement to enter data manually. All transactions such as payments and fees of PayPal get auto-recorded in QuickBooks.
- No Hidden Charges: QuickBooks software is free, however, you have to pay fees for PayPal transactions only.
Conclusion
Both PayPal and QuickBooks are useful applications. The process of linking PayPal with QuickBooks is quite a simple and smart way to track your business financial records.
Now you have enough knowledge of how efficiently PayPal works with QuickBooks and how easy it is to link and use. All information related to this has been mentioned above. We hope you will find this information useful.
Read More Articles:
Quickbooks Inventory Management
