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NewBee22
June 24, 2022
Question

Credit Card Expenses and Payment

  • June 24, 2022
  • 2 replies
  • 0 views

I am new to quickbooks and trying to assist my mother with some rental properties she owns. Her previous assistant was having us input the credit card expenses into QB as an expense, but she hadn't figured out how to input the cc payment into QB and link it to all of the input expenses. The CC is not linked to the QB account because they don't use it only for business purposes and don't want their personal purchases to accidentally link to the business... I hope this makes sense. Do you have any insight/advise or processes to walk through something like this? Thanks again for your help!! I am feeling totally lost ...

2 replies

K
Kurt_M
June 24, 2022

I've got you back, @NewBee22. I'll be happy to share some information about your concern so you can get through this and link your credit card payment to your cc expenses in QuickBooks Online (QBO),

 

Since you already entered the credit card expenses to your QBO account, QuickBooks will automatically recognized it as paid. You'll have to make sure that the account you've selected is the credit card account that you're currently using.

 

If you still wish to link the payment to an expense, you'll have to create a bill and then receive payment. To create a bill,  here's how:

 

  1. On the left navigational bar, select + New and then click Bill.
  2. From the Supplier ▼ dropdown, select a supplier.
  3. From the Terms ▼ dropdown, select the bill's terms. This is when your supplier expects to be paid.
  4. Enter the Bill date, Due date, and Bill no. as they're recorded on the bill.
  5. Enter the bill details in the Category details section. From the Category dropdown, select the expense account you use to track expense transactions. Then enter a description. .
  6. Enter the Amount and tax.
  7. If you plan to bill a customer for the expense, select the Billable checkbox and enter their name in the Customer field. Learn more about billable expenses.
  8. When you're done, select Save and close.

 

Once done, refer to this article for further guidance on how to pay the bill: Enter bills and record bill payments in QuickBooks Online.

 

 

I'd also like to add this article for more details about the difference between bills, checks, and expenses in QuickBooks Online:  Learn the difference between bills, checks, and expenses in QuickBooks Online.

 

In QuickBooks, no need for you to worry about personal purchases accidentally connected to your business account. If you've connected your credit card to QBO, please know that you have an option to exclude your personal purchases so they won't appear in your business account. Feel free to refer to this article for further guidelines on how to record credit card payments in QBO: Record your payments to credit cards.

 

If there's anything else that you'd like me to assist us with, @NewBee22, feel free to post your QuickBooks-related concerns here in the Community space. Our door is open 24/7, and our team of dedicated experts is always ready to assist you anytime. Take care!

N
NewBee22Author
June 30, 2022

Thank you @Kurt_M for all of the advice and help! I think for all of the already input expenses it will make the most sense to create a bill to link them to, however is there a way to "match" all of the separate expenses to one bill? Since several expenses will be listed for one credit card payment "bill"? 

 

Also, moving forward, do you recommend a faster/easier way to input the credit card expenses/receipts and the credit card payment into QBO? Or is this the best/most efficient and accurate way? It kind of seems like it's double the work since I'm essentially going to be inputting everything twice and matching it to each bill... if this is the only way possible that's fine. I just want to make sure it's the most efficient way. 

 

Their cc expenses are mostly supplies and costs they acquire during renovations or if any repairs need to be made to any of the properties. I'm not sure if this is useful information to you or if you need to know this when considering how it's input but I figure it can't hurt. Thank you again for all of your help! 

K
Kurt_M
June 30, 2022

Thanks for getting back here in the thread, @NewBee22. I'll be happy to address your additional QuickBooks-related concerns so you can get through this.

 

First off, I appreciate you for the additional details that you've posted. Yes, there's a way to add all your expenses to your bill. For now, the only way to link your expenses to a bill is by manually editing each category detail of your expenses. You'll then change the category detail to Accounts Payable (A/P).

 

Once done, you can create a bill and then use bill payment to link those expenses. If you wish to continue, I'll outline the steps below for the complete process so you can proceed to add them to your bill. To begin, here's how:

 

  1. Access your QuickBooks Online company.
  2. On the left navigation bar, go to Expenses tab.
  3. Locate those expenses that you'd like to link to your bill.
  4. Change the Category details to Accounts Payable (A/P).
  5. Click Save.

 

Once done, proceed to create a bill. Here's how:

 

  1. Access your QuickBooks Online company.
  2. On the left navigational bar, click the  +New button.
  3. Under Vendor column, select Bill.
  4. Enter the necessary details, then Save.
  5. Click the Mark as paid button beside the Schedule online payment button.
  6. In the bill payment view, go to the Credits section.
  7. Select the expenses that you'd like to add to the bill, and then click Save and close.

 

I'd like to add that if they're planning to pay for it later, what you're going to do is to create a bill and then use bill payment to receive the payment. Also please know that you can use expenses, if you're going to pay the product or service they've rendered on the spot.

 

For your second query, connecting your credit card to your QBO account is the most efficient way to add CC expenses or receipts and the credit card payment into your QuickBooks Online account. You can refer to this article for visual reference on how you can connect your credit card to QBO: Connect bank and credit card accounts to QuickBooks Online.

 

Know that you're always welcome to get back to me anytime if you need further assistance aside from linking your expenses to your bill. I'll be also pleased to lend you a hand again, and make your QuickBooks experience awesome. Thanks for choosing QuickBooks. Take care, and have a good one!

M
MaximusM
July 6, 2022
In short, GoDaddy Bookkeeping doesn't count a credit card payment as an expense because the expense was already recorded at the time of the purchase. That's why credit card payments and all transfers that simply reflect money moving form one account to another are considered Non-Business.
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