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A
asy
January 8, 2022
Question

keeping track of credit cards in quickbook

  • January 8, 2022
  • 1 reply
  • 0 views

hi everyone - this is for quickbooks desktop 2021

I am trying to make our quickbooks more accurate by cleaning up prior mistakes.

I have seen different tutorials on this and am still confused, it certainly may be because I have not found the correct tutorial.

We are trying to basically keep track of the credit cards and make sure that everything is updated in quick books.

I seem to be confusing the banking and credit card section with the vendor section.

We are able to import all of our transactions for credit card into bank and credit cards. It shows as -$xx.xx.

We have the vendor set up for the same credit card. However, I am unsure how to move the transactions in the banking feed over to the vendor.

If there is a good tutorial or certainly a set of them please let me know!

I am sure I am just confusing the process

thank you!

 

 

1 reply

BigRedConsulting
BigRedConsulting
January 8, 2022

Credit card accounts work like bank accounts, only they're on the opposite side of the balance sheet. Instead of assets, they're liabilities. So, when you write a check to buy something, the bank account balance is reduced, and when you make a purchase with a credit card, you credit card balance increases.  That noted, a check and a credit card charge otherwise have the same basic accounting: They both Credit the Bank or CC account and in their simplest form, Debit the expense account (or other account type used) for the purchase.

 

Similarly they can both use Vendors as the payee, or any other type of name in QuickBooks and neither have anything to do with Accounts Payable, unless they are paying an A/P Bill. And, in the case that they are, there are special transaction types for that case (Bill Payment Checks and Bill Payment Credit Card Charges) which are creating using the Pay Bills feature.

 

Still, unless you really are receiving bills from the vendor, holding them in A/P for a period, and then paying them with a credit card, there's really no little to no involve Accounts Payable. If you're just purchasing stuff at retail, you can just enter a Credit Card Charge, either in the CC account's register or using the CC form.

 

If you are appropriately entering A/P Bills to be paid later and then paying them with a CC, use the Pay Bills feature to create the Bill Payment Credit Card Charge before you download the transactions using the bank feeds feature, or at least before you accept and record this type of downloaded transaction. Once recorded, then you can match the downloaded transaction with the existing one instead of adding it to the register.

    A
    asyAuthor
    January 12, 2022

    thank you!

    So is it worth importing all of the charges on the credit card that she is paying with her bank account or just the end of the month statement credit?

    I apologize for not explaining my question well.

    The scenario is that the business credit card is being used for retail purchases. this is then paid off with the bank account.

    What is the usual way businesses keep track of this and to what detail.

    For example, if she is buys a printer for $500 on Friday and a ream of paper for $30 on Monday with a make believe bank credit card, how should she enter that in quickbooks if she pays it all off at the end of the month with her bank account?

    I guess I am just confused on how someone would normally set up a credit card to track the charges and then the credit card statement with the bank account.

    sorry, just confused

    C
    Catherine_B
    January 12, 2022

    Hello there, asy.

     

    If the credit card transactions and payments are part of your books, you'll want to record or import them in QuickBooks. You can also connect your credit card account so you don't have to manually record and import them. All transactions made will automatically download in your bank feeds. 

     

    For the purchases made through credit card, you have the option to use a bill and then create a bill payment once it has been paid. After recording the purchases, you can pay your credit card charges to reduce your liability. 

     

    Here's how to pay credit card charges: 

     

    1. Go to the Banking menu, select Write Checks.
    2. Select the bank account you want to use for paying the credit card from the Bank account dropdown.
    3. Enter the date of your payment and select the name of your credit card company from the Pay to the order of dropdown.
    4. Input the amount of your payment.
    5. Select the Expenses tab and on the Account dropdown, select your credit card account.

    6. Click Save & Close.

    For more details in handling your credit card accounts, you can always refer to these articles:

     

    Don’t hesitate to leave a message below if you have follow-up questions about your transaction. The Community is always here to lend a hand.

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