For three days now I have been trying to figure out how to account for payments to the Clinic via PayPal. The money goes into my personal PayPal account, and credits against money owed me for expenses, but I just don’t want to post the delta, I want to track what happened so the cash flow report is accurate. I tried a lot of accounts, but always ended up with the debits and credit balances fighting so the cash flow was backwards. Then I read this post who recommended that I treat the PayPal account like a bank account. I created “PayPal Bank”, receipts were deposits, and actual transfers into the account were transfers. Works like a charm.
So how do I account for donations of cash? Duh. Contribution Revenue.
It’s so nice when things work out. Now I can actually finish the books and work on my OWN taxes.