PayPal - bookkeeping advice

Discussion in 'Accounts & Finance' started by 19ninety, Sep 7, 2019.

  1. 19ninety

    19ninety UKBF Regular Free Member

    183 17
    If I sell something on my website, and something on eBay, both customers pay by PayPal, do I need to differentiate between the two when doing my bookkeeping (Website Sale & eBay Sale)? Or can they both simply be set as PayPal Income since my Website, eBay and PayPal will keep a record of the source of the income?
     
    Posted: Sep 7, 2019 By: 19ninety Member since: Nov 22, 2015
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    16,097 1,797
    Annual accounts wise they are the same for tax purposes.
    For you knowing in your own business what brings money in you may want to differentiate them.
     
    Posted: Sep 7, 2019 By: Mr D Member since: Feb 12, 2017
    #2
  3. 19ninety

    19ninety UKBF Regular Free Member

    183 17
    Thanks Mr D. Yes I used to separate them when I was using Wave accounting for that reason, QBO has rules which automate a lot of the work I was having to do before, but despite website sales making up the majority of income I think for the sake of a few extra clicks it would be good be able to accurate figures in the reports still.
     
    Posted: Sep 7, 2019 By: 19ninety Member since: Nov 22, 2015
    #3
  4. Victoria_V

    Victoria_V UKBF Regular Full Member

    125 16
    Hello! You should record revenue from your sales on your accountancy package or on an Excel spreadsheet. When recording your revenue, you may find it beneficial to separate your sales by the different sales channels(website, ebay). Separating your sales from the various sales channels will help you to give better information on how each sales channel is performing.

    Whether you are trading as a sole trader or an Ltd company, when you prepare your company or personal tax return, you can report revenue from all your sources of sales as the total amount from all sources of sales.
     
    Posted: Sep 9, 2019 By: Victoria_V Member since: May 29, 2019
    #4
  5. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    12,731 2,361
    No, you dont have to.

    Do make sure you record the gross sales though ie not the net you receive from PayPal but the actual sale showing the fee as an expense. If you dont do this your sales will be understated.
     
    Posted: Sep 9, 2019 By: MyAccountantOnline Member since: Sep 24, 2008
    #5