You can now have your morning coffee waiting for you the second you roll out of bed. You can set your heating to come on as soon as your humble abode becomes anything less than toasty. Thank goodness for automation, right?
It’s also a blessing when it comes to running a business and managing your finances too. From bank feeds to automated invoice reminders, automation tools can help business owners deal with their bookkeeping and accounts more easily. Fortunately for those using PayPal in their business, there are options to help you too!
How can I make accounting for PayPal transactions easier?
Depending on the accounts software you use, it’s possible to connect it to your PayPal account. Known as Paypal feeds, they work the same way as bank feeds, connecting your bookkeeping software to the bank so that transactions flow straight into your accounts records as they happen.
This way you won’t need to spend time entering information about each PayPal transaction into your accounts, whilst also reducing the risk of keying in the wrong details. It just means all of the payment and bank accounts your business uses can be kept in one place, streamlining the process of looking after them.
The (many benefits) of automating your accounts
Sometimes, it feels like the easiest and most time-effective thing to do is to stick with what you already know and stay firmly rooted in your comfort zone.
Venturing into accounting areas unknown, and shaking up the status quo of the tried-and-tested systems you already have in place can seem daunting and quite frankly, highly unnecessary when you’ve already got a million and one things on your plate.
More often than not, the easy option won’t be the one that helps you grow, evolve and develop your operations. It’s taking things to the next level – no matter how scary it might seem – that will get you where you want to go.
Saving time you could be spending elsewhere
This one goes without saying but removing manual functions like entering data into bookkeeping records, and replacing them with automated ones buys you back hours, days, even weeks worth of your precious time.
It also means that you can include those figures if you use your bookkeeping software’s reporting tools. So, not only do you cut time on data entry, you won’t need to spend time collating information from separate sources into one report. Double win.
You’ll have more time for analysing and acting on the information, rather than compiling it in the first place! That way, you can concentrate on those exciting future plans and areas of development that set your entrepreneurial soul on fire and grow your enterprise.
Helping your accounts be more accurate
We’re all human (unless, of course, you’re a robot sent from the future to read this article) and we all make mistakes. Anyone can mess up from time to time, and that’s okay.
Manual bookkeeping leaves you wide open to making the kind of errors that, whilst not the end of the world, could have a negative impact on your accounts – and your stress levels.
Automated accounting drastically reduces the risk of human error so you can be sure that your books and reports are as accurate as they possibly can be. And the beauty of maintaining accurate financial records is that they allow you to:
- Make more well-informed business decisions
- Plan ahead and forecast the future of your business
- Stay out of trouble with HMRC, and on top of important deadlines
- Avoid headaches further down the line when mistakes inevitably crop up
You might well still need your seasoned accountant to help you make sense of the information, but accurate numbers are the best kind of foundation to build on. And really, if the information you need is already in PayPal, you might as well just magically transport it across to your business’s books rather than writing it all out again.
Keeping currencies all in one place
If you trade internationally, currency conversions can become one of your biggest pet peeves. But hey, you don’t need us to tell you that.
When you automate your accounting, transactions in any currency can be processed and recorded without you having to even reach for the calculator. Again, this reduces the risk of human error and accelerates the accounting process considerably.
Negating the need for outdated storage methods
Regulations require businesses and accountants to store records for a number of years before disposing of them. Traditionally, this means piles of paper and towers of dusty files cluttering the place and getting in your way. Moving to digital methods not only frees up your time, it frees up your physical space. Tidy desk, tidy mind, and all that jazz.
It also makes records much easier to access again in the future, without needing to laboriously work your way through old PayPal transactions in order to match them up to your bookkeeping. And that’s before we get on to the enhanced security.
Paper records are at serious risk of loss or damage, even if you duplicate them. Digital records are readily available via the cloud, leaving you safe in the knowledge that your data is secure and easy to access.
Now all that’s left to do is put theory into action.
PayPal for Pandle FAQs
If you’re aware of Pandle’s PayPal integration then you’re already a step ahead. For those who aren’t familiar, here are our answers to some of your FAQs to get you started.
Is it easy to set up?
Yes, super easy! All you need to do is add your PayPal feed in the same way you would connect a new bank account. Once approved, you can then select the date you’d like your transactions to start flowing into Pandle, and once you’ve done that, you’ll be all set.
What about multiple currencies?
We’ve got it covered. Pandle automatically detects the currencies in use in your PayPal account and creates ‘sub-accounts’ for each one. You won’t need to lift a finger.
PayPal integration comes as a bespoke wraparound for Pandle users so if you’d like to know more, just say the word and one of the team will be more than happy to talk you through. Just hit the live chat button on screen! Or, for some hands on testing, give Pandle Pro a free trial – no card details required.