Paypal monies - leave or move to business a/c

Hi all,

A quick question...

I have recently started a business where I am going to collect credit card payments via paypal. What is the best thing to do with these payments? Leave there or transfer to the business bank account?

With leaving them put in the paypal, the balance in the 'bank account' will never rectify with the accounts, does this matter? I will obviously have receipts etc for the payments.

Can I also use this paypal account for personal non-business usage as long as I document which entries are business etc?

Regards...

You could treat the Paypal account as a second bank account and include transactions on it aswell in your accounts. When you do finally transfer money over it would be like a transfer between bank accounts.

As long as properly recorded personal use should not be an issue if you are a sole trader. If operating through a company could have PAYE implications.

Many thanks for the reply dam099.

My company is Limited, so I think it will be best to open a new paypal for personal usage.

On a connected note:
My current Paypal Account which I have now changed over to be a 'business paypal account' has some monies already in it from deposits i have made etc. Can I use this amount as an 'opening balance'?

Is it okay to say that from today the opening balance is xxx and just start using it for business only sales/purchases on my books??

Cheers.