![]() To put it simply, your first real choice is whether you want to go down the manual route and record everything yourself (using Excel or simply good old pen and paper!) OR if you want to invest in accounting software, which will help you record and monitor your business’ cash flow, profit and loss, invoices, tax liability and even VAT (with some of the more advanced options). So I’ve finally decided to tackle this subject, as I get an insane amount of questions about it, and even if you just use this as a starting point in your own research, that’s still good enough. Why? Well the main reason is that I personally outsource ALL of my accounting to a professional accounting company.Īfter all, I always preach about outsourcing and hiring a professional who will do the job better than you, and this couldn’t be more true than with accounting, especially when you consider the number of different businesses that I own and operate.īut for small business owners and sole traders, who simply need to keep track of everything for their own sake and to help with filling in your basic end of year self assessment, this is not 100% necessary and you can definitely get by using some of the great online tools that are now available. from the feed), you can either tag them all to this invoice, or you can delete them and enter one lump payment of the £250.00 as money coming into the new bank account (created above).Today’s topic, accounting software for eBay/eCommerce sellers, is something that I’ve put off writing about for a while. If you have individual transactions in your PayPal account (e.g. In this example, I’ve opted for one client, with my invoice looking like this: You can create this for a generic client, something like ‘eBay Sales’, or if you’d prefer, you can create a new invoice for each client that you made a sale to. So if you know that in May for example, you made sales worth £250.00 with fees fo £15.00, you can create one invoice for the month (dated on the last day). If you have a lot of sales, you can lump these together. If you haven’t already, set up a new bank account on QuickFile for PayPal: If that’s incorrect, please let me know and I’ll revise my answer below. Ok, from what I understand, you receive payment via PayPal for your sales (minus PayPal fees), but you also pay eBay fees on a monthly basis by Direct Debit from your bank account. Some users find it easier to do this on a weekly basis, but the important thing is to make sure your invoices don’t cross periods (e.g. In essence, you’d treat it like any other shop, and can log the income daily. You don’t need to raise an invoice for every customer. Otherwise, something along the lines of “ebay fees, xx/xx/xxxx - xx/xx/xxxx” should be OK Description - I normally recommend to replicate what’s shown on the invoice to help you identify it.Category - Sales commission should be fine.Supplier reference - this would be the invoice number that eBay/Amazon provides.Receipt number - this is the auto-generated ID used for QuickFile, you can generally leave this as it is.£1.00 transferred from your main bank account to your PayPal Account £1.00 tagged to a supplier invoice for eBay2. ![]() Let’s say we have eBay fees of £1.00, you would have:1. £0.50 tagged to a supplier invoice as PayPal feesįor ebay invoices, I’d imagine it would be the reverse but in 2 steps. £9.50 would be transferred the main bank account, tagged as a transfer £10.00 would come into the PayPal Account, tagged to the £10 customer invoice I’ll show you an example with a payment for £10 from a sale, but PayPal fees of £0.50 being taken too. You basically have 3 transactions for ever payment coming in and being transferred to your bank account. So, what you would have essentially, it a set up for PayPal money in and out, as per the guide here. I’m not 100% sure how eBay take their fees, but from a bit of googling I take it that they invoice you on a monthly basis, and then you pay, either manually or automatically from PayPal or another method.
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