It's perfect for keeping track of Paypal account activity. Since Paypal can hold a surplus balance (i.e. if you sell something and accept a payment from someone), a debit from your checking or credit card accounts might not equal a transaction amount. If you save all Paypal debit transactions as transfers INTO your Paypal cash account, then enter the Paypal transactions into the cash account, everything balances and you can track Paypal activity precisely. You can even download transactions in QIF format to reconcile the cash account (or to just make the entries for you) whenever you want.