Xero Bank Accounts – How to Add a PayPal Account

by | May 23, 2018

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Given the popularity of PayPal, Xero has made it easy to add an account to your file. PayPal accounts are added to Xero in much the same way as a bank account. In this guide, we will add a PayPal account to Xero’s demo company.

Bank Accounts Section in Xero

To get to the right area of Xero, go to Accounting → Bank accounts from the main menu:


How to Add a PayPal Account

On the main Bank Accounts screen in Xero’s demo company, you should see two bank accounts and no PayPal accounts set up. To set up a PayPal account, click on the + Add Bank Account button on the left-hand side of the screen:


On the next screen, you will see a Find your bank tool that lets you search for banks and other institutions by name. Type paypal into the tool and select PayPal from the drop-down list:


In the next screen, we need to enter some account details. For the purposes of this exercise, enter the following details:

  • Account Name: type in PayPal.
  • Currency: leave as AUD.


When you are ready, click on Continue to be taken back to the main Bank Accounts screen. Here, you should see your PayPal account underneath the other two bank accounts:


That’s all you need to do to add a PayPal account to Xero.

If you have already been using your PayPal account, you should enter an opening balance before importing any transactions. To do this, follow the steps in this tutorial on how to add an opening balance to a bank account, credit card or PayPal account.

After that, you can import transactions either by setting up an automated feed or by manually uploading the PayPal transactions.

Mark Cunningham

Mark Cunningham

Xero Specialist | Udemy Instructor | Small Business Owner

I have been a company accountant for more than 20 years. I am now dedicated to empowering small business owners through my highly-rated and popular Udemy courses on Xero, bookkeeping and accounting.

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