Import PayPal & eBay transactions into QuickBooks

Written May 24, 2014

I’m often surprised that so few people realize they need to track their PayPal account in QuickBooks along with the rest of their financial data. An alarming number of you say, “Well, I’m both earning and spending the money for business so it doesn’t matter. I don’t keep any of the money so it’s not really income”. If you file your income tax return on a cash reporting basis, you need to record the income in QuickBooks effective the date you received it into your PayPal or eBay account, and you must record your expenses effective when you used those funds to make purchases.

Essentially, your PayPal account is a bank account. When you accept PayPal payments from your customers, you need to record those in the same kind of detail as if they paid you with a credit card or check. If you use your PayPal funds to make a purchase online, you need to record that detailed information as an expense just as if you wrote a check for the purchase.

I know you don’t want to have to enter all of those details. The iif file that PayPal uses isn’t ideal because it posts everything to Other Income or Other Expense, does not have a renaming tool, and requires editing each transaction in order to update account & class. So its still too much work.

Here’s a solution!

Follow this link to Big Red Consulting’s website. They have an easy-to-use program that performs a big task for a very small cost. It imports all of your PayPal and eBay transactional data into QuickBooks, not as journal entries, but as real QuickBooks transactions.

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