PayPal

Make it easy for customers to pay, and reconcile your transactions

About PayPal

There are two main ways you can use PayPal in your business:

  • to buy goods

  • to make it easy for customers to pay for goods and services you sell

PayPal transactions

Xero treats your PayPal account like a bank account. A direct feed of data from your PayPal account into Xero makes it easy to keep track of cash in and out, and match transactions with those showing in Xero.

Here's an overview of Bank Feeds, and more information in Xero Central.

To set up your PayPal direct feed:

  1. Go to Accounting > Bank accounts and click Add Bank Account

  2. Select PayPal from the list, then Login & Connect Accounts.

  3. Enter your PayPal email address and password then Sign On.

  4. Select the appropriate account(s) and Continue.

  5. Click Connect My Accounts and Connect.

Receiving payments through PayPal

PayPal makes it easy for customers to pay for their purchases. Add PayPal as a payment service, and include it in your invoices.

  1. Click your organisation name > Settings > Payment Services

  2. Next to PayPal click Get Started

  3. Enter the PayPal email

  4. Either create a new expense account for fees, or use 404 Bank Fees.

  5. Click Done.

On the Payment Services page, click Manage Themes and add PayPal to the appropriate invoice themes.

Learn more about PayPal in Xero Central.