QB Issue Resolution:

business funds should never get mixed with personal banking

 

as far as net profit goes, correct, net amount is the same as gross sales less fees, but accounting practice is gross and expense entered separately.  It can also matter when computing sales tax since sales tax on the gross sale amount and not the net.

 

whether or not your service is subject to sales is a state determination, if you have checked with them and you do not have to collect/pay sales tax, that would be good.  But it is still best practice to enter both gross and expense, an audit will expect that too

 

Resolution for Issue 'I used to use QB Pro 2011 and then QB Online but several years ago I decided that my needs were simple enough to handle in Excel. I’m beginning to get more payments in PayPal and as I consider returning to QB (not sure if it’ll be Online or Desktop), I want to find the easiest way to handle PayPal. Here’s how I get paid. I have graphics contracts and am usually paid by check. Some prefer to pay by credit card so I use PayPal. I use a bank with a business account (for my graphics payments) and a personal account. I deposit PayPal money directly to the bank’s personal account. I think I set it up that way in QB long ago so QB could see the invoiced amount ($100) and the transaction fee ($3). I didn’t want to deposit the net ($97) into my bank business account. Not sure why. So…if I return to QB, is there any harm in depositing the PayPal net income to my business account and not deal with the bank fees? Tax-wise, not recording the PayPal fee is the same as simply recording the net income, right? I’m asking so that I can set up QB in what looks easier–dealing with my bank business account rather than it and the PayPal account.' available: Yes (Solved).
Source: Intuit Community forum.

I used to use QB Pro 2011 and then QB Online but several years ago I decided that my needs were simple enough to handle in Excel. I’m beginning to get more payments in PayPal and as I consider returning to QB (not sure if it’ll be Online or Desktop), I want to find the easiest way to handle PayPal. Here’s how I get paid. I have graphics contracts and am usually paid by check. Some prefer to pay by credit card so I use PayPal. I use a bank with a business account (for my graphics payments) and a personal account. I deposit PayPal money directly to the bank’s personal account. I think I set it up that way in QB long ago so QB could see the invoiced amount ($100) and the transaction fee ($3). I didn’t want to deposit the net ($97) into my bank business account. Not sure why. So…if I return to QB, is there any harm in depositing the PayPal net income to my business account and not deal with the bank fees? Tax-wise, not recording the PayPal fee is the same as simply recording the net income, right? I’m asking so that I can set up QB in what looks easier–dealing with my bank business account rather than it and the PayPal account.: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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