Explaining Paypal transactions

Hi - I have the following questions for Paypal:

  1. Should one tag/explain the transactions from with the paypal bank account?
  2. I have a couple of transfers of income from Paypal to my main bank account, where should these be explained/tagged?


Hi @aubreymg

You should ideally tag all transactions in all bank accounts, or they end up sitting on a suspense account nominal code (9998) which may show up incorrectly on any reports (e.g. balance sheet).

You would treat these as you would any other transaction, such as tagging them to an invoice.

Do you mean the transactions that would be the deposits from paypal (the withdrawals)? If so, these should be tagged as a transfer from your PayPal bank account.

There’s a guide to the bank account setup below, which you may find useful:

Thanks very much - hopefully all sorted!

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