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benjya85
April 19, 2020
Question

Recording PayPal Fees in Quickbooks Online

  • April 19, 2020
  • 1 reply
  • 0 views

Hi all,

Please forgive the newbie question for someone new to business and recording everything digitally, instead of using a spreadsheet.

I recently started using Quickbooks Online to record all my income and expenses relating my business that accepts PayPal.

 

When I've entered Sales Receipts for my sales, for example $100.00, I've entered as received $100.00 (including GST), even though PayPal took their cut of $2.60.

In total for the month of February, I paid total of $300.00 (example) in PayPal fees. When do I record these fees?

 

I'm guessing it's in the reconcile option?

I'm very late to start recording everything so really rushing to get everything completed before BAS lodgement date.  But since PayPal is GST free, I don't think it's required to include on BAS, I hope! Just required in terms of reporting Profit & Loss?

 

Thanks in advance everyone :)

1 reply

J
JonpriL
April 19, 2020

Hello there, @benjya85!

 

Ideally, you'll have to record each PayPal fees on the same day you created the sales transactions. Since they're not yet recorded, you'll want to enter them by the end of the month when reconciling your sales transactions and your statement.

 

However, I'd still recommend contacting your accountant for additional guidance in handling your PayPal transaction fees.

 

Lastly, Here's a few articles you can read to learn more about how you can manage your account: Help Articles for QuickBooks Online.

 

If there's anything else that I can help you with, let me know in the comments. I'll be happy to help.

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