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organizedpro
November 27, 2023
Question

Record Credit Card Payment

  • November 27, 2023
  • 1 reply
  • 0 views

Hello,

 

I did my first reconciliation for a credit card statement and then paid a bill using personal funds. The personal account I used the funds to pay down the credit card is not linked in my QuickBooks Online account, and I don't want to add it there. My payment to the credit card is displaying as a bank transaction since I do I have the credit card account linked in QBO, but I do not know if I should categorize, record as transfer, or record as credit card payment. 

1 reply

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DebSheenD
November 28, 2023

Hello there, @organizedpro.

 

I can see the urgency of this matter and provide you with the resolution you need to get through this situation. Upon reading your post, I can see that you don't want to add you account in QuickBooks. To get through this, you'll want to set up a clearing account to temporarily hold the funds from a financial transaction and to link re credit card payment to this account.

  1. Go to the Gear icon and then select Chart of Accounts.

  2. Click the New tab.

  3. Choose Bank for the Account Type. You may choose any detail type you want for your clearing account.
  4. Type in the name (clearing account).
  5. Leave the Amount field blank before clicking Save.


Once done, you can now record the bank transaction as credit card payment. 

Here is the link to the comprehensive guide that provides detailed instructions for recording your payment to a credit card in QuickBooks Online: Record your payments to credit cards in QuickBooks Online.

 

I would like to share this article to know how to track bills and record payment. Here's the topic you can utilize for reference: Enter and manage bills and bill payments in QuickBooks Online.

 

If you have any further questions about QuickBooks or anything else, please don't hesitate to ask. I'm here to assist you.

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organizedproAuthor
November 28, 2023

Thank you!

 

If the personal bank account I used to pay the credit card is not in QuickBooks, do I need to add the personal account or can I use the default "Cash" account? I'm a new business and still learning, but moving forward I'll just fund my business checking account with personal funds and pay from there to make it easier.

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MadelynC
November 28, 2023

Thanks for reaching back out, @organizedpro. Let me chime in and provide additional information about managing payments made with personal funds.


In QuickBooks Online, you can add your personal account if you used it to pay off your business credit card. Adding your account helps distinguish your personal and business transactions. It also allows you to track company expenses accurately and maintain clear documents for tax and accounting purposes.


While you could use the default Cash account for this transaction, it's best to consult your accountant for guidance.


If you don’t have an accountant yet, visit our ProAdvisor website to find one. Our advisors are equipped to offer you guidance from both technical and accounting perspectives. They have access to training materials, software tools, and dedicated support resources to ensure they can provide you with hands-on support when you need it the most. Simply enter your city, state, or ZIP code to connect with them.


As you mentioned, funding your business checking account with personal funds and paying from there is a good practice for keeping your business finances organized.


I’m adding these resources to learn how to effectively track expenses you made with personal funds and handle expenditures in a business account:

 


If you have any more questions as you continue learning, feel free to ask. I’ll always be here to help you out, @organizedpro. Wishing you success.

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