Is a Paypal Business Account an Asset or a Liability?
Jonell
Member Posts: 2
Hi! I initially started using Wave way back in 2013 (!), and set up stuff kind of haphazardly, since I wasn't really making any money in my business. In the past year or so, I am finally earning some income (yay!) and realizing that my Wave things may not be set up quite right. The Fearless Guide is sort of helpful--but it (and the other guide I found: Epic Guide to Wave Accounting for your Online Business) assume that you are transferring from another accounting system rather than starting from scratch like me.
Which brings me to my question. I'm finally mostly understanding that the Chart of Accounts isn't just about bank accounts (lol). I'm wondering if my PayPal Business Account is really a Liability and not an Asset (which is where I have it now)? It's linked to my Business Bank Account, and I only use it for online purchases, and don't hold money in it or accept payment through it. I haven't linked it to Wave. I'm thinking that since I'm using it kind of like a credit card or a debit card really to move the money from the bank to online vendors, that it is actually a liability. Anyhow, I'm not even sure how important this is, but I don't know how to categorize this account! Can anyone out there help?
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Did you ever find an answer?
HI @jfdkldsflksiorj , a PayPal account would be placed under Cash & Bank in Assets. This is because it houses your money similar to a bank account.