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About Karin Hostetler
Expertise
I am a certifed member of QuickBooks® Professional Advisor group and can answer questions on Quickbooks® Basic and Pro, all versions through 2010.
I do onsite, telephone and online consulting through my website at:
http://www.karinhconsulting.com
Have a complicated issue that you can't put into one question? Consider a one time FREE 30 min consultation.
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Experience
I have worked with Quickbooks® since version 1, and have had a tip published on the Intuit website. I work exclusively with small business owners in setting up Quickbooks®, giving on-going support to tweak the reports, resolving data issues and correcting problems. I offer monthly, quarterly and yearly tune-ups to prepare the clients data for presentation to their CPA at year end.
Publications
Intuit Pro-connection
Education/Credentials
I have a degree in Administration and Management with 20 years of hands on business experience in many fields
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You are here: Experts > Shopping > Credit/Debt Management > Quicken & Other Budget/Accounting Software > Paypal setup and Customer Setup
Expert: Karin Hostetler - 10/30/2009
Question
QUESTION: Re: QuickBooks SimpleStart Software
I am not an accountant, however I do have some book-keeping knowledge from running my own business.
We are opening a dot com online website business where members will pay to join to receive ad space.
They will pay to join through Paypal.
1. First we do not wish to invoice each member as there will be to many, and no need to database them at this point.
Question: Should we set up and invoice one customer account called "members" to set up receivables, or should we set up Paypal not only as a "bank", but as a "Customer" that we can "invoice" whenever we wish to have funds transfered to our main company bank account.
2. Since Paypal will be a bank account that we may choose to use to pay for certain expenses, can we write virtual checks in Simple Start from the Paypal bank account to post purchases and bill payments to expense accounts.
Since this is a start-up, and keeping the expenses low, we chose to download the free version of Simple Start with a 20 customer or vendor limitation, hense our not wishing to invoice each member as they join. We see no need to do that as they will be sent a receipt from Paypal for their payment after checkout of the paypal payment suite.
Any setup information would be appreciated as we have no experience with this type of web business.
ANSWER: Hi Trever,
Let me be sure that I have the gist of your business correct.
You customer will pay as they go for space on your website. If this is the case, you would not have any receivables and you could do just as you said and use one customer called member. You could technically do a single sales receipt per day lumping all of the sales on one receipt. If you want the detail of quantity you would enter the numbers by how long they have paid for (Ie 6 month, 1 year, 2 years etc)
You have to enter the payments as they are received on a sales receipt, deposited into your paypal account. QuickBooks adds income through the item list and sales receipts and Invoice. Waiting until you transfer money from the account would completely understate you income. When you wish to transfer money to your main company bank, you would enter that as a deposit into the bank account, with the "From" account Paypal.
And yes you can enter checks into the Paypal bank account in QuickBooks to reflect moneys disbursed for bills.
There is much that you should consider when setting up QuickBooks, but I can only answer specific questions.
Karin
Hope this helps
---------- FOLLOW-UP ----------
QUESTION: Thank you Karin, very much. This is helpful. So based on your answers, how would you best set up Quickbooks related to "much you should consider"?
I have 3 bank accounts set up as follows: Main Bank, PayPal, and PaidbyOwner(where I write a check based on a completed expense report each month dispursing the breakdown expenses to the correct accounts accordingly).
I haven't set up the Chart yet, however I am getting to that and any help there would be appreciated based on your things to consider comment.
You have the gest of the business correct, and I would like to make this as easy as possible, so any setup information prior to my actually launching the web business will be appreciated.
Will SimpleStart with 20customer/vendor limitation do the job at least at the beginning stage?
Thank you
Trevor
Answer
Hi again,
To answer your question as to whether Simple start will handle the job. Yes it is quite adequate for your set up. If you were to begin billing individual customers for additional services on a regular basis, you might want to consider moving up to QuickBooks Pro.
Karin
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