Part of running a business in 2020 is accepting multiple forms of payment and knowing how to do so. We’ll cover how to accept credit card and payment processors like PayPal or Venmo.
Step 1. Create a new bank account in QuickBooks and name it after the payment processor (like PayPal or Google Checkout). Set up multiple accounts for your convenience - one account for each merchant that processes payments for you.
Step 2. Once your payment is received, deposit it into the merchant account you created in Step 1. Do not deposit it directly into your checking account.
Step 3. Once the money shows up in your checking account, transfer the funds from your merchant account to your bank account. If you regularly accumulate funds in your PayPal or other similar account, it’s better to transfer the amounts randomly when needed.
Customer pays via CC or PayPal > Money hits Merchant Account > Money hits Checking Account
Step 4. To account for your fees and costs in your books, there are three ways to do so:
If you have questions about any of this, contact Skynar Bookkeeping for assistance.