What's the best way to handle PayPal?

[Dr. David Kirkby (Kirkby Microwave Ltd)]

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

Unfortunately, whilst that is how I'd like to keep it (simple), on
some occasions I've not realized there is money in the PayPal account,
and purchase something. That leaves three possibilities

* If the purchase is <= £95, all the money is taken from the PayPal account.
* If the purchase is > £95, then £95 will be taken from the PayPal
account, and the rest from the bank account.

This all adds a layer of complexity I'm not comfortable handling.

What I have done in the past is to import all the PayPal transactions
to Excel, and have them in one tab. All the bank transactions are in
another tab. The PayPal income of £100 would be put in a Income tab,
and the £5 fee as an expense. Whilst I can see that I could continue
to do this, it is rather error prone. But at least my accountant has a
record of all the PayPal transactions too, so if he spots any
problems, he has that information.

Yours,

Rather confused.