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Paypal Accounting Question - What do you guys do?

by mikey21
3 replies
How do you account for your business' expenses that are paid via paypal? Do you ask for receipts?

Do you send bills out to your customers who pay you monthly fees?

My accountant says that paypal statements are not satisfactory anymore...so I'm wondering how I should proceed. How do you guys do it?
#business #expenses #paid #paypal
  • Profile picture of the author mikey21
    Anyone have any advice on this?
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  • Profile picture of the author pjCheviot
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    Originally Posted by mikey21 View Post

    My accountant says that paypal statements are not satisfactory anymore...so I'm wondering how I should proceed. How do you guys do it?
    If your Accountant says Paypal Statements are not satisfactory anymore - then I would suggest asking him what is.

    At the end of the day - he will be the one acting on your behalf regarding taxes.

    HTH
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  • Profile picture of the author BIG Mike
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    [DELETED]
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    • Profile picture of the author mikey21
      Thank you very much for your replies pjCheviot & BIG Mike.

      I would agree yes he is the one who knows best. The reason I asked what you guys do specifically is because his suggestion sounds a little too time consuming and rather impractical and I was hoping there might be a way around it based on others' experience.

      The suggestion is to get valid receipts from my outsourcers and other related expenses. The only thing is that I have over 70 clients paying me in $50-$70 increments every month with this certain paypal account. I furthermore have to prove that these customers are from outside Canada, since sales tax doesn't apply. You can maybe imagine how things can become impractical. Now if I must do it then I will, I was just looking for feedback. He obviously has a point in saying "how can you prove that this $1,000 you sent out is for services rendered and you're not just sending money to your cousin in xyz country while trying to write it off as a business expense".
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