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Anyone sell online?

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  • 13-10-2016 2:31am
    #1
    csd1970
    Registered Users Posts: 2 ✭


    Just wondering what's best practice regarding selling online and when to enter transactions / how to deal with payment fees.

    Say for something like Paypal, do you transfer to your bank account every week / month? Should this be entered as a single transaction in your books? (with a copy of the individual transactions in paypal being kept)
    how to deal with Paypal fees? Would you put in the gross amount (inc fees) then put the fees as an expense? Or just pretend the fees don't exist and put in the net amount?

    Just trying to wrap my head around using paypal (or whatever) as opposed to just a standard bank account, when should transactions be noted....when they come into the paypal account or bank account....
    There doesn't seem to be a lot of info out there so wondering what others do.

    (then there's Stripe etc who put a 7 day delay but thats a whole other matter :) )


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    #2
    jimmii
    Registered Users Posts: 14,810 ✭✭✭✭jimmii


    When the payment is taken it doesn't matter which account you have it sitting in you've taken the payment that's all that matters. PayPal fees are just a cost much like how you would account for any other transaction fees.

    You can transfer the PP funds as often as you want I used to use it like a VAT kitty and transfer it when the VAT payment was due.


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    #3
    meijin
    Registered Users Posts: 1,266 ✭✭✭meijin


    csd1970 wrote: »
    Just wondering what's best practice regarding selling online and when to enter transactions / how to deal with payment fees.

    To have all transactions accurately recorded, you'd need a separate "PP/Stripe bank account" setup in your software, with all transactions coming in, and PP/Stripe fees being paid from that.

    When you get a transfer to your bank account, you record it as a transfer between accounts?

    That's my understanding... I'm not an accountant.


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