Reconciling Paypal with QuickBooks
How to Reconcile Paypal with QuickBooks
Reconciling your Paypal account with QuickBooks is very similar to reconciling a bank or credit card account. First you want to print an activity report with balances from Paypal for the period you are reconciling. You can do this by logging in to your Paypal, and going to: "Activity", then choosing the option "Activity (including balance & fees)". Now to reconcile with QuickBooks, follow these steps:
Step 1. Go to the Banking menu at top menu bar and click Reconcile.
Step 2. Select your Paypal account from the dropdown menu at top left.
Step 3. Enter the ending date of the period you are reconciling, as well as the ending balance of the period you are reconciling. (The beginning balance should be the same as the beginning balance of the period on the Paypal transaction report).
Step 4. Match all the debits and credits in the reconcile window with their corresponding debits and credits on the Paypal report by checking them off one by one. (You may also check the box "Hide transactions after statement end date" and click "Mark All" if there are too many transactions to check individually). When the account is fully reconciled, the "difference" at bottom should be $0.00. If it has a balance that is not immediately obvious to you, you will need to "Unmark All" and start checking them off one by one - with the Paypal report.
Step 5. Click Reconcile when the difference is $0.00.
NOTE: For QuickBooks Online, click the Gear Icon at top right of screen then select Reconcile and continue with Step 2 above.
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