What's the best way to handle PayPal?

[Colin Law]

On 3 December 2016 at 14:14, Dr. David Kirkby (Kirkby Microwave Ltd)
<drkirkby at kirkbymicrowave.co.uk> wrote:
> If I sell something for £100 and someone pays £100 into the bank
> account, then its fairly easy to reconcile that, as one can import the
> bank transactions.
>
> When PayPal get involved, I'm not sure how to handle this. In the
> simplest possible case
>
> * Balance of PayPal is £0.00
> * Balance of bank is £2000.
> * Someone buys something for £100
> * PayPal take £5 commission
> * £95 is in my PayPal account
> * I transfer the £95 to the company bank account, bringing it up to
> £2000+£95=£2095
>
> I can import the bank transactions, but are unsure how to handle the
> PayPal side of it. Should I set up a separate account for PayPal?
> Should the transaction be split? What the best way to handle this,
> which is least subject to human error.

Yes you should setup a separate acct for paypal. Paypal is just
another bank account.

Colin