Hi, I have a client who runs a website design business. there are loads of "PayPal" transactions on the bank statement for the purchase and renewal of domain names. I have been told by the client that PayPal don't really issue invoices for these....What do I do?
Surely Paypal is only handling the payments. If he's buying domain names, he should get an invoice from the hosting company, and if he's selling them he should raise an invoice.
I have a client in the same business and they do get invoices for this sort of bulk purchase of domains spread over a period but thats a bye the bye.
The Paypal Statement will show all of the transactions (hope that they are in the UK, its the bane of my life having to go through so many Paypal currency translations to knock them down from four transaction lines to one).
You could create pro forma purchase invoices to match the payments against.
As a seperate note, how are you treating PayPal? I treat it as a seperate bank account and reconcle it totally seperately to the business main account.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
These payments from the bank have the reference "Direct Debiit to PayPal payment" , that's all I've got, no paperwork, zilch , nothing. And when I queried it I was given the answer above in my first post. What do I do ? Give the paperwork back and forget it?
It may be that the client is technically challenged rather than trying to hide anything.
Explain to them that you need the transactions history report from their PayPal account.
Its basically a list of all of the transactions which they can drop to Excel which makes it easier for you to sort through it.
To get it, log into PayPal, Click Activity, Click on Statements, choose the period you want and then comma delimited, all payments. Simples. You have a PayPal bank statement that you can play with in Excel.
If the client is genuinely hiding the transactions from you rather than just not knowing how to get the statements then it would be time to think seriously about walking away.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Hi Georgie I HATE Paypal, but that said its not as bad as Amazon! I would set Paypal up as another Bank account and do the Rec and keying as Shaun suggests - it is just another 'Bank account' - so do what you would always do with the standard current account ie get a statement, then chase for paperwork for any debits and credits. Remember the Direct Debit you are seeing is just like one that clears a Business Credit card account.
Its easy to get a Bank account - ask for a transaction activity list ( I think thats what its called)
For any website domain names etc - each 'supplier' eg Go Daddy / UK Fast / etc WILL produce invoices, including VAT invoices if appropriate. Your client will need to go into each supplier's online portal....go to the Account section and print the invoice. Sounds like he is just being lazy?? Maybe he could give you access and you could trawl for the paperwork. (So Shaun - no need to create proforma invoices - Im surprised you suggested that one you BAD BAD man! lol)
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Yes maybe they are being lazy. Or more likely trying to put through expenses that aren't legit as you can't tell from the item on the bank statement what they are for.
The paypal activity sheet should definitely help you then Georgie. Sounds like he is claiming to host websites but actually outsources the hosting to maybe the big boys. I've set up my own website years ago and always managed to get invoices despite changing hosting companies twice. Keep persevering, I get to be a right old nag with mine (well being protective really lol)
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
