This article explains how to set up your PayPal Premier or Business account to synchronise with your FreeAgent account and enable Express Checkout for receiving invoice payments online.
If you have a PayPal Premier or Business account you can accept online payments from your clients using Express Checkout and, with API access enabled, automatically sync PayPal with your FreeAgent account.
Paypal API setup
Before you can enable this you'll first have to edit some settings in your FreeAgent account. Start with Adding your PayPal email address to your list of verified emails in FreeAgent and then adding your PayPal account to the 'Banking' section.
Next, grant API access to FreeAgent through PayPal.
Once logged into your PayPal Premier or Business account at www.PayPal.com, select the Activity tab and choose API Access from the drop-down menu:
Select the Grant API Permission link:
On the Add New Third Party Permissions screen, enter freeagent_paypal_api1.freeagentcentral.com and select Lookup:
Select the following five options from the resulting screen:
Enabling an automatic feed in FreeAgent
You need to log in to your FreeAgent account to follow the next steps. 'Edit' your PayPal account from the Banking section and look for the 'Additional Features for Premier or Business accounts' options.
Select from the checkbox options to 'Enable Automatic Feeds', including whether you want FreeAgent to guess transaction explanations, and 'Enable Express Checkout'.
We recommend that you tick the ‘Guess bank transactions’ tick box as this will ensure that the PayPal fees are split out and explained automatically for you.
Foreign currency transactions
FreeAgent can account for any income you receive through foreign currency PayPal transactions.
If you’ve set up your PayPal account to automatically convert foreign currency transactions into your FreeAgent base currency*, you should set up a single PayPal account in FreeAgent in that currency. You can do this by navigating to Banking and choosing ‘PayPal’ from the ‘Add new’ drop-down menu and completing the account details. Your converted transactions will then import and will be posted to your accounts as normal.
If you hold multiple foreign currency balances in PayPal, you'll need to set up separate accounts in FreeAgent (one for each currency) and choose the appropriate currency when you complete the details for each account.
FreeAgent will only import PayPal transactions that are in the relevant currency for each of your PayPal accounts in FreeAgent, so all your foreign currency transactions will feed through to their respective accounts separately.
How FreeAgent accounts for foreign currency transactions
FreeAgent automatically accounts for your foreign currency PayPal transactions in the base currency of your FreeAgent account, using the latest exchange rate on xe.com.
This means that the figures on your accounting reports (such as your balance sheet and profit and loss report), and the figures you see on your overview screen will be displayed in your base currency. FreeAgent revalues your accounts every day against the current exchange rate and updates your converted figures accordingly.
*If you have a UK account, your base currency will be GBP, if you have a US FreeAgent account, it will be US dollars, and if you have a Universal account, it will be the currency you selected when you first set up your FreeAgent account.