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 the 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 its benefits.
What are PayPal and QuickBooks?
Paypal is an online payment system for transferring money securely. Money can be sent to others from bank accounts, credit cards, or a PayPal balance. QuickBooks is accounting software developed by Intuit and is geared toward small and medium-sized businesses. Both technologies help users in their way. Businesses can use it to track finances and expenses and create invoices, and pay employees. QuickBooks is an accounting tool. Users can integrate PayPal with QuickBooks for further benefits. Let’s learn it one by one. The two programs often integrate, making it convenient for businesses to handle operations and finances.
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 payments, 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 people. 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 offers integration tools to enhance its 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 by adding PayPal to QuickBooks. It is the best way to track and handle your business transactions. Here are some steps that will show you how can connect PayPal to 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 holds, reversals, 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 steps:
- Sign in to your QB Online Account and go to the App option, and then select Find Apps.
- Now search for Connect to PayPal.
- You will see an option to 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 pop 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 that 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 to connect to PayPal:
- Start by logging into 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 Are Updated by the 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 the 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; for example, 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 into QuickBooks. These are as follows:-
- Increase Cash Flow: Creating invoices and getting payments is a time-consuming process. Online payments are done by using credit/debit cards, and PayPal reduces the time for 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 safer.
- Set up 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.
Steps to Sync and Integrate PayPal with QuickBooks
To sync and integrate PayPal with QuickBooks is very easy. So, here are the steps that you can follow to integrate PayPal with QuickBooks:
- You have to open the QuickBooks Online app and sign in to your account.
- Next, click on the Apps tab.
- Type PayPal in the search box and then select the PayPal app.
- No need to select Get App Now.
- Next, choose QuickBooks Online Business.
- At the end, click the Allow button to connect the app to QuickBooks.
After this process, QuickBooks Online will integrate PayPal with QuickBooks every 15 minutes. With this integration, you will get daily reports of integration and the latest transactions.
How to Import PayPal Transactions to QuickBooks Online?
Follow these steps for importing PayPal transactions to QBO:
- With the help of an IIF or CSV file, you can import accounting product transactions to QuickBooks.
- There is an easy step to import it, you need to drag data from PayPal to QuickBooks with the use of the new PayPal API.
- You can also use the PayPal Bank Feed machine to import transactions.
Mapping and Setting
The smart mapping technology is implemented for categories so customers have a choice to map and set up PayPal accounts utilizing QuickBooks Online. You need to watch or edit program parameters so the PayPal loan may be mapped against the right QuickBooks Online account.
Verify Your Transactions
You can view your transactions using the tabs within QuickBooks Online directly after import. When installation is completed, QuickBooks Online refreshes with new PayPal transactions and reconnects with PayPal every 15 minutes. A daily summary of the integration process will be delivered to you.
Steps to Import PayPal Debit Card Transactions to QB Online
- First, access your QuickBooks Online account with the registered username and password.
- Click Allow to sync with the PayPal app card in the Apps menu.
- A tab will appear on your screen after you have selected the Sync with PayPal app card setting.
- In the app’s settings, choose Edit.
- During importing, always keep in mind that the checkbox is checked to include my PayPal Debit Card transactions.
How to Reconcile PayPal in QuickBooks Online?
You will have to draw against undeposited funds, plus include the deposit from the bank, in reconciling your PayPal account in QuickBooks Online. Follow these steps to reconcile PayPal in QBO:
- Open PayPal to access your accounts.
- Use Undeposited Funds by having PayPal record your payments.
- The bank deposit needs to be posted to PayPal.
- Undeposited Funds are one of the possible payments.
- Proceed, include New Deposits next.
- This option has to be utilized to post negative deposits.
Improve Cash Flow with PayPal and QuickBooks Integration
- Get paid faster: Send the QuickBooks invoice and settle the payment immediately through PayPal.
- Save time: Use your PayPal account to bring in transactions such as sales, expenses, discounts, fees, and GST.
- Stay organized: Keep the spending in QuickBooks Online and synchronize the PayPal sales invoices.
- Up-to-date PCI compliance: Our mission at Intuit is to secure your business and your customers.
- Take good care of your payments: Use the QuickBooks mobile app to manage your billing, invoicing, and payments.
- Easily takes care of customers: Utilize PayPal to make online payments by accessing over 200 million active consumer accounts.
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.
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