If you have a Business PayPal account, you can set up an automatic bank feed in Xero.
New transactions are imported every 24 hours. If you use multiple currencies in PayPal, then you can import each currency separately using Xero’s multi-currency capability, powered by XE.com.
PayPal bank feeds are far superior than importing your PayPal statements manually. As you may have experienced, PayPal statements have the tendancy of having line items in there that do not actually affect your balance. When you import this into Xero it can become difficult to reconcile the bank. To keep your accounts clean, Xero will only import transactions that change your PayPal balance – so you don’t need to deal with credit card purchases on your PayPal account or with currency conversions.
If you’re not familiar with PayPal, then it’s certainly worth having a look. PayPal is an online service that allows you to take payments from your customers using credit card or international bank transfer. Once payment is received into your PayPal account, you can transfer it to your bank account or spend directly from PayPal. In Xero, you can also add a link on your invoices inviting your customers to pay by credit card using PayPal.
If you would like to find out more about the benefits that PayPal can bring to your business, please get in touch with our experienced team.