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ArtyFacts123
July 15, 2024
Question

Entering multiple credit card statements on new QB file and how to get opening balance correct?

  • July 15, 2024
  • 1 reply
  • 0 views

Hi there!

I created a new QB company file for a client, and needs to me to enter their credit card statements transactions starting with January 1, 2024.  This credit card is a personal credit card with some business transactions, and I don't have access to the payment source data (ie. their checking account statements, etc.).

 

The first credit card statement given to me has a previous balance and also shows a payment credited as well.  To make this more fun, our office policy when setting up a new QB file is to NOT use Opening Balance Equity for any bank/credit card accounts - but rather to manually enter opening balance as a Journal Entry with Owner Equity as the account. 

 

So I have two questions:

1) What is the best way to record the previous month's payment?  Just enter it as a "credit card payment" and the Account could be "Shareholder Distributions"?  Right now I just have it as "Ask My Accountant".

2) When I try to reconcile this first month, the opening balance says zero - even though the register's balance on 1/1/2024 says the "correct" amount.

 

What's the best way to do this?

 

Thanks for your time!!

1 reply

L
LeizylM
July 15, 2024

Setting up the credit card account and ensuring the opening balance is reflected correctly in QuickBooks Desktop (QBDT) is our top priority, ArtyFacts123.

 

Regarding your first question, yes, you can enter it as a Credit Card Payment or use a check transaction. I'll show you how:

  1. Select Write Checks from the Banking menu.
  2. Choose the bank account you wish to use for paying the credit card from the Bank account dropdown menu.
  3. Select the date of your payment.
  4. Choose the name of your credit card company from the Pay to the order of dropdown menu.
  5. Enter the amount of your payment.
  6. Navigate to the Expenses tab.
  7. Select your credit card account from the Account dropdown menu.
  8. Click Save & Close.

 

After you reconcile the credit card account, you have 2 options for paying part of the outstanding balance:

 

 

When selecting the correct account, I suggest consulting your accountant. They can provide guidance based on your specific business needs and accounting practices.

 

For your second question, It's possible that the account where you posted the opening/beginning balance through your Journal Entry (JE) is incorrect, since you are using JE. This is why the bank balance isn't showing. In this case, you'll need to select the Opening Balance Equity account for your opening or beginning balance. 


Let's edit the existing JE (Journal Entry) and make sure Opening Balance Equity is selected, not Owner Equity. This is to ensure that the amount of the beginning balance is posted accordingly. You can refer to this article for additional reference: Fix beginning balance issues in QuickBooks Desktop. 

 

I'm always prepared if you have more questions or concerns with your QuickBooks opening balance. Kindly leave a comment below, and I'll promptly lend a hand.

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