PayPal Accounting

Pay Pal Accounting Do's and Don'ts PayPal PayPal as a payment system, both online and mobile, is on the rise and businesses should be cognisance of how it can affect their overall financial reporting. The following is prepared by Vertaccount Pty Ltd to assist businesses in properly accounting for their PayPal transactions. Common PayPal Bookkeeping Problems Impact to Your Business Oftentimes, your PayPal account is not accounted for resulting in: Risk of Incurring Penalties Due to understated GST. Customer Payments are not reported as INCOME. Risk of Higher Income Tax Liability Purchases paid are not recorded as EXPENSES, Due to understated expenses. Underutilized Cash Paypal Fees are not recorded. Excess cash just sitting in PayPal account which can be used elsewhere. THE RIGHT TREATMENT your PayPal Account as ANOTHER BANK ACCOUNT. Treat $4 PayPal accounts have to be reconciled & properly accounted for. * Tips & Tricks Use QuickBooks, MYOB and Xero "transfer funds" functionality to record your fund transfers to your bank account. This way, you can easily track your transfers without the use of journal entries. Record payments to vendors using PayPal the same way you will record bills payment from your bank account. This functionality is also present in QB, MYOB and Xero. For further information and assistance, please contact: Dave Hayes [email protected] C 02 8599 1760 www.vertaccount.com Disclaimer PayPal Here isa simple way to accept MasterCard and Visa credit and debit card payments through your iPhone, iPad or mast Android devices, using the free PayPal Here app and the PayPal Chip & PIN reader With PayPal Here you c an get paid anywhere your customers are. You can also send your customers receipts direct to their mobile phane ar email, PavPal Here can be uzed to email an track your cash payments. The PayPal k 111 195 389) which holds Australian Financial Services Licence number 304962. Any information provided is general advice anly and does nat take into account your objectives financial situation ar needs Please consider the Cambined Financial Services Guide and Product Dizclasure Statement available at www.paypal.com.au before acquiring or using the ervice al Here card reader is provided by PayPal Payments Pty Ltd. (ABN 64 216 7915311 a Singaporean company The PayPal service is provided by PayPal Australia Pty Limited (ABN 9 3 Vertaccount Bookkeeping Problems Solved の O の の の O6659 Xx X の OO の の