Setting up of PayPal account in QuickBooks makes things a little bit easier because once PayPal is set up in QuickBooks, you will be able to link your PayPal account balance in QuickBooks as a bank. The sales data will be automatically synced including the details of sold items, shipping, taxes, etc.
And it’s not the end. You can also review your PayPal transactions before you add them to your books of accounts and you can also easily reconcile your PayPal account after setting up it in QuickBooks. Basically, you can review and reconcile your PayPal account in one place and the data flow to your books of accounts automatically.
Steps to set up a PayPal account in QuickBooks
After knowing all the benefits of setting up PayPal accounts in QuickBooks, you must now be looking for the steps to guide you to do the same. The below steps will help you to do so:
- First of all, you need to go to the PayPal website through the browser and log in to your PayPal account by entering your credentials for the business account
- In the next step, click on the My Account tab > and then History > click on the download history option.
- The “Download history” option will let you access the download options page and there you need to enter the date range for which you want to download the transactions and import it to QuickBooks. And select file type as (.iff) and click on download history.
- Before importing the PayPal data to QuickBooks, you need to ensure that you do have a PayPal account in your QuickBooks chart of accounts.
- Now in the next step, for importing the data into QuickBooks, you need to click on file > Utilities > import > and click on (.IFF) files.
- Now browse and select the (.IFF) download history file from your computer that you saved before.
- Your PayPal data will be imported into QuickBooks and will be automatically placed in the appropriate categories (income and expense) as part of the process.
One thing you should keep in the mind is that if you want to import your PayPal data into the existing income, expenses, and fees category in QuickBooks, you just need to enter those category names in the required fields while you are exporting the transactions data from the PayPal website. This will help in the easy import and you won’t have to create new categories for PayPal income, PayPal fees, and expenses in the QuickBooks.
The steps in the above writeup will definitely help and guide you in setting up and importing the PayPal data into QuickBooks, but in case you still need further information on any point or have some queries in your mind, and the QB technical helpdesk will help you.