I have set up a PayPal bank account which is showing funds in QuickBooks. I am unsure how to manage these funds. Any advice would be gratefully received.

Let me help you manage the PayPal funds in QuickBooks Online (QBO),

For funding transactions, the money movement between bank accounts and the PayPal account will appear as a transfer. It will also appear as a transfer if you pay for a purchase through PayPal that is funded with a bank account or credit card. You can create a rule to tell QuickBooks which account the transfer is coming to/from.

We can utilize Bank Rules to save time on categorizing transactions. Suggested rules for PayPal include the following: 

• Bank Transfer: If the bank detail contains Added funds from a Bank Account or Withdrawal to an account, create a transfer and set the account to a bank account. Make sure to specify the credit card account to which you will move the money from PayPal.
• Credit Card Transfer: If the bank detail contains Added funds from a Credit Card, then create a transfer and set the account to a credit card account. Specify the credit card account to which you will move the money from PayPal.

For the steps and details on how to create a transfer and bank rules, see the Transfer funds between accounts and Setup bank rules to categorise online banking transactions in QuickBooks Online articles. 

To learn more about Paypal, check out these articles:

• Connect to PayPal Guide
• Connect to PayPal - FAQs

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Feel free to reply to this post and I'll get back to you. You have a good one.