Before You Start

This guide assumes you have daily PayPal/Venmo deposit statements ready and administrator access to your accounting software (e.g., QuickBooks, Xero).

Overview

25 min
Setup Time
Intermediate
Difficulty
Monthly
Maintenance

What You’ll Learn

  • How to prepare your chart of accounts for FinTech payouts
  • Setting up Synder for automated daily imports
  • Strategies for handling PayPal and Venmo fees
  • Bulk matching and reconciliation workflows

1. Preparation Steps

Before connecting anything, you need these accounts in your accounting software (e.g., QuickBooks, Xero):

Required Accounts

  • PayPal Sales (Income)
  • Venmo Sales (Income)
  • PayPal Fees (Expense)
  • Venmo Fees (Expense)
  • PayPal Bank Account (Bank/Asset)
  • Venmo Bank Account (Bank/Asset)

Optional (but recommended)

  • PayPal Refunds (Expense)
  • Venmo Refunds (Expense)
  • PayPal/Venmo Holding (Bank/Asset - for in-transit funds)

2. Choosing Your Sync Method

You have two main options, each with serious pros and cons.

Method A: Manual Import & Categorization

This involves manually downloading reports and processing them.

Pros:
  • No software costs.
  • Full manual control.
  • Good for very low volume.
Cons:
  • Time-consuming for high volume.
  • Prone to manual errors.
  • Difficult to track fees separately.

Method B: Third-Party Automation (e.g., Synder, Catchr)

These are paid apps that offer far more control and automation.

Expert Tip: We strongly recommend using a third-party tool like Synder or Catchr. These tools automatically categorize transactions, separate fees, and match payouts to bank deposits, drastically simplifying reconciliation. They use the “payout” method, which perfectly matches your bank deposits.

3. Step-by-Step: Syncing with Synder

Here is the high-level workflow for a clean setup.

Here is a sample code block to show how a PayPal payout structure might look.

{
  "payout_id": "PY-123456789",
  "date": "2025-10-24",
  "gross_amount": 1000.00,
  "fees_charged": 29.00,
  "net_amount": 971.00,
  "currency": "USD",
  "transaction_count": 15
}

4. Setting Up Synder

  1. 1

    Connect PayPal/Venmo to Synder

    Authorize Synder to access your PayPal and Venmo accounts. Ensure all relevant permissions are granted.

  2. 2

    Connect Synder to Accounting Software

    Link your QuickBooks Online or Xero account in Synder settings. Grant admin access when prompted.

  3. 3

    Configure Account Mapping

    Assign Synder’s transaction categories (sales, fees, refunds) to the correct accounts in your chart of accounts.

Common Error: Incorrect Fee Categorization

Make sure your PayPal/Venmo fees are mapped to an Expense account type in your accounting software, not Income or a Bank account. This ensures your net profit is accurately reflected.

5. Testing Your Setup

Test Import Checklist

  • Import a test payout from last month for both PayPal and Venmo
  • Verify gross and net amounts match PayPal/Venmo statements
  • Confirm fees are separated and categorized to the correct expense accounts
  • Check that the imported payout amounts align perfectly with your actual bank deposits

Need Help?

Get Support

Having trouble reconciling your PayPal or Venmo transactions? Our team can help troubleshoot your specific workflow.

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