Do you use PayPal for your Business?
How do you use Paypal to send or receive money in your business?
First, create a new Bank Account called Paypal. You can use this account just like your checking account, depositing payments for payments received and writing checks (no check number needed) for purchases.
Accounting for Paypal fees? These are “bank charges” or “merchant fees” expenses. For invoices, record the payment for the full invoice amount (if that is what was paid). When depositing to the Paypal bank account, record the fee as a negative amount on the first 
empty line in the deposit window.
Click here for larger screen shot
** Note ** These instructions work for basic transactions in Paypal. If you have shipping, sales tax or more complex transactions this will not be the best solution for you. I am researching a few options (including some of the software mentioned below and in the comments). I will report back with a follow up.
Want to download your transactions directly to QuickBooks? After logging on to your Paypal account, select History > Download History. Choose the time frame to download and select the QuickBooks .iif file type. Download to your desktop or another easy to locate directory. Try including the date in your file name to keep things organized.
In QuickBooks, from the file menu, select Utilities> Import> IIF files. (This may very based on your QuickBooks year and version.) Locate and open your IIF file downloaded from Paypal.
Now to take a look at the transactions you just imported. Bring up the Find window with Crtl+F. Filter by Account> Paypal and Entered/ Modified> Today. This will create a list of all the new transactions in the Paypal account. Double-click on transactions to edit accounts or memos.
For an even more automated system, try SimplePort from Simple Biz Systems. SimplePort recognizes sales and transfers and creates the appropriate sales or banking transaction in QuickBooks. For a full list of benefits click here. There are some limitations with refunds and foreign currency so this may not be a solution for you if you have many of those transactions. Sign up for a 30-day free trial to see for yourself.
Save Time and Money with Internet Fax
Think about this: Cutting costs has the same effect on your bottom line as increasing revenue. The net result is more profit.
If you are currently paying for an extra phone line and fax machine ink or toner you may want to consider one of the numerous Internet Fax or Fax by Email services available. These services save you money, letting you receive faxes without using a fax machine or needing an extra phone line. They could also save you time, enabling you to fax directly from your computer. Interested? These providers are the leaders in Internet Fax services.
RingCentral.com
processes both incoming and outgoing faxes remotely. They don’t tie up your computer or phone line and RingCentral notifies you when the fax is complete. It is easy to use. Your faxes (and voicemail, optional) are sent directly to your email inbox and are stored in your online account for easy access. You can send faxes using any Microsoft® Windows application. RingCentral offers the competitive domestic and international rates, starting at 3.9¢/page. You can also get alerted to incoming faxes by text messages sent to your cell phone or pager. Toll free and local numbers are available. Prices start at $9.99 per month.Use this link to get a Special Sign Up Bonus: Get extra month of rollover minutes. Order Today!
RapidFax.com
makes sending a receiving faxes as easy as email. You can choose to send and receive faxes through email or through the easy to navigate web interface. Choose a local or toll-free number at no extra charge. There are no set-up fees. RapidFax.com can be used from anywhere you have Internet access. Starting at $9.95 per month for 300 pages.
Try RapidFax Today for FREE for 30 Days!
CallWave
converts incoming faxes to Adobe® PDF files and delivers them directly to your email. You can save, search, print and archive faxes just like any other file on your PC. Use your PC and Internet connection – no new equipment or software needed. There are no limits to the number of faxes you can receive.
Get a local, private fax number! You’ll get faxes directly in your email inbox. Only $7.95 after a 30 day trial!
MyFax.com
offers tons of extra services along with fax-to-email service. The account setup wizard makes getting setup a breeze. No setup fees and no contracts. You can be faxing in minutes. Be sure to check out all the extra features. Starting a just $10.00 per month.
Special Offer: Buy 2 Months Get the 3rd FREE
Having a fax number helps lend credibility to your business. It also make it easier for clients to keep in contact with you, saving you time any money. Compare the costs and decide if Internet Faxing is right for you.
Accounting Basics: The Chart of Accounts
Many of my QuickBooks training sessions begin with an overview of some accounting basics. Without an understanding of the basics mistakes tend to creep into the setup. And that leads to incorrect financial reports and decisions based on bad information.
Here’s what you need to know about the QuickBooks Chart of Accounts
Access the chart of accounts using the shortcut Ctl+A or from the lists menu.
Types of Accounts
Asset Accounts- These are things the business owns or possesses. Examples are cash on hand, undeposited funds, accounts receivable, inventory, equipment and fixtures. Assets are usually divided between Current Assets (cash or easily converted to cash) and Fixed Assets (Equipment, vehicles, property).
Liability Accounts – These are things that the business owes. Accounts payable, credit cards, business loans and lines of credit, sales tax and payroll taxes payable.
Equity accounts- Owners’ accounts. Money that the owners invest in or withdrawal from the business.
Income Accounts – This is probably the easiest to understand. Income = revenue = money coming in.
Cost of Goods Sold – Expenses related to the selling of goods. Cost of sold inventory, cost of labor in producing goods or services, job costs.
Expense Accounts- These are non-job related costs. Rent, utilities, insurance, etc.
Other Income – Used to track income outside normal business activity.
Other Expenses – Used to track expenses outside normal business activity.
It is important to understand the chart of accounts when setting up items and other preferences in QuickBooks. For help customizing the chart of accounts for your business see our support options here.
