Paypal / bank statements - considered the same?

[cwilliams]

With PayPal being used now by many people, that is the primary way clients pay me in my business. I also pay a couple things from that account using the PayPal debit card. I know we have to turn in bank statements, but has anyone specifically been told to turn in statements from PayPal as well if they use that account similarly to a checking account? I'm curious because I have printed out income received through PayPal but not a statement showing expenses as well, although I should because I consider PayPal fees a business expense.

Also, we have been cashing paychecks and spending the cash for bills - paying cash or buying money orders - for years and barely use our checking account. I keep track of expenses using Quicken and a written budget just as I've done for years. Is that frowned upon and will it show a red flag or should we start using the checking account and debit card in the future?

[jobby99]

Wondering how you deal with student loans? They usually want you to sign up for automatic checking account withdrawals. I think the cash basis is good. A whole lot simpler than the complicated math of banks.

-Frank

[cwilliams]

I guess I'll see what they say in the future. Right now the loans are still in deferment. I don't really like auto debit but I do have it for Netflix (through PayPal debit card) and our car insurance. It's not my favorite thing to do but if I have to I will.

[JRScott]

Yes you should print out the paypal statements (inputs, outlays, expenses)

[pookieny]

I have Paypal but I never really used it for anything major, just to pay for ebay items. My lawyer did not ask for any paypal statements. Isnt' it tied into your regular bank account anyways?

[mike258]

The UST asked me for copies of bank statements and registers for ALL accounts. I included Paypal just in case...

[AngelinaCat]

In our case, when we purchase an item on eBay and pay with PayPal, PP draws the payment from our CU. We really don't keep any money in it.

[OhioFiler]

In our case, when we purchase an item on eBay and pay with PayPal, PP draws the payment from our CU. We really don't keep any money in it.

This is the key. If you are stashing cash in Paypal's bank then you will need to produce the account statement.

If you only use Paypal as an agent with access to your personal checking account as AngelinaCat does it's not necessary.