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TextElevate
October 19, 2022
Question

How to categorize credit card items reflecting my payment to the credit card account?

  • October 19, 2022
  • 1 reply
  • 0 views

Hello! 

 

I just successfully imported/uploaded my business credit card transactions into my QuickBooks for Self-Employed account, and while I know I'm supposed to categorize my payment from business checking to my credit card bill as a transfer, I'm also seeing two entries for each billing cycle I'm not sure what to do with:

 

Total Payments Credits

Online Payment (or "Payment - Thank You")

 

These two entries are always the same amount, belong to the credit card transactions, and are reflected as credits (positive rather than negative). 

 

Should I categorize one or both or either as Transfers and exclude them? 

Not sure what to do with these. Any help appreciated! 

 

- TextElevate

 

 

 

1 reply

C
Carneil_C
October 20, 2022

Congratulations on successfully importing your transactions, @TextElevate. I'll provide information about categorizing your transactions in QuickBooks Self-Employed.

 

About this matter, we can categorize these transactions as business expenses since it appears in every billing cycle. However, it would be best to seek professional advice from your accountant. This way, they'll be able to guide you on the best process for managing your transactions to ensure the accuracy of your accounts.

 

If you're not affiliated with one, you can utilize our Find an Accountant tool to look for one in your area.

 

You might want to consider reviewing this resource to know more about organizing your transactions: Categorize transactions in QuickBooks Self-Employed.

 

Moreover, you can refer to this article to see different information on how QuickBooks Self-Employed tracks your business income and taxes: QuickBooks Self-Employed Overview.

 

Keep me posted if you still have questions or concerns about your transactions in QBSE. I'll be around for you. Have a great day!

S
SELawton
February 23, 2024

I have the same question, but am using QuickBooks Online. Is there a difference regarding this particular process?  And what to do about the double entries? Will QuickBooks "match" these together, making a single entry or is there another process or reason there should be two?

C
ChristineJoieR
February 23, 2024

Thank you for notifying us about your product and issue, SELawton. This will allow me to provide you with an accurate resolution. With that, I'll chime in to deliver additional information about how the categorizing feature works and how to deal with the double entries in QuickBooks Online.

 

QuickBooks Online prevents double entries due to its ability to match transactions and provides functions to correct misclassified payments. 

QBO will also identify transactions as Match with one you've already entered and link them together to avoid duplicates. 

 

Here's how:

 

  1. Find a downloaded transaction with the Match option in the Action column.
  2. Note the Date, Description, Payee, and amount spent or received.
  3. Select the downloaded transaction to expand the view.
  4. Review the Matching records found in QuickBooks. This is the possible matching transaction you've already entered in QuickBooks.
  5. Select the link next to each match to get more details.
  6. Make sure this is the correct match. In particular, review the Deposit to, Payment method, or Bank account fields on forms for the existing transaction in QuickBooks.
    Note: The fields you see may differ depending on the transaction you're matching.
  7. If this is the correct match, close the open transaction.
  8. Select Match.

 

When downloading transactions into QuickBooks Online (QBO), they initially appear under the For Review tab. QBO helps users match these transactions by highlighting similar ones. Once matched, they move to the Categorize tab, preparing them for the reconciliation process, which ensures accurate financial records and proper management of cash flow.

 

Furthermore, in case you find inconsistencies with credit card payments appearing as expenses instead of liability reductions, you may need to review and modify payment types. Alternatively, utilizing the Transfer feature can help you move the payment from the expense account to the appropriate liability account representing your credit card balance, ensuring accurate financial representation.

 

Additionally, it's recommended to regularly refer to your banking statement and reconcile your credit card and bank accounts to maintain accurate records and ensure proper categorization of credit card payments. Here's another article that you can use for reconciling your account:

 

 

If you need a guide related to this concern, please let me know by adding a comment below. We are always here to assist you further. 

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