Reconciling PayPal accounts has been a nightmare for accountants all over the world and for a long time. But PayPal isn’t going anywhere, so I’ve made it one of my missions to figure out how to reconcile PayPal lightening fast. The answer? Pivot Tables.
The first rule to reconcile PayPal lightning fast is that you never use the banking app in QuickBooks Online for PayPal. It is horrible. It does not download the activity consistent with how it actually shows up in PayPal. Particularly on the sales side. You get gross amounts and fees in separate transactions, and that is not how it shows up on the PayPal statement. If you only pay for things with PayPal then it’s fine.
The second rule to reconcile PayPal lightning fast is that you need to download the monthly statement (found in reports) in both PDF and CSV format. The PDF is only to verify and enter the ending balance and statement date. The csv file is what you’ll use to reconcile the account.
Here are the steps to reconcile PayPal lightning fast
- One – Once you have the PayPal monthly statement in csv format is to save it as an Excel Workbook (see video).
- Two – convert the data to a table (see video).
- Three – format your dates and amounts (see video).
- Four – create a pivot table (see video).
- Five – create your money in tab (see video).
- Six – create your money out tab (see video).
Once you have completed these steps you will have everything you need to reconcile PayPal Lightning fast. The video will show you what this all looks like.