Create a Credit Card under a Bank Account
- November 26, 2022
- 1 reply
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I am accounting for a small business and I'm quite new, so if anything below doesn't seem like the most efficient way to do something, please let me know!
I am accounting for a small business and I'm trying to keep track of a bunch of transactions. There are two places which the money for the business has come from: the owner's personal funds and the business checking account. There is only one card associated with the business checking account, but multiple personal cards and cash flows the owner has which he's used to personally fund the business.
I have set up two accounts in quickbooks online. One which is linked to the business checking account and one representing the money coming from the owner's pockets (I renamed the default quickbooks account). I have named these accounts Business Checking Account and Owner's Personal Funds.
I want to create credit cards underneath each of the accounts, but I'm unable to do so. When I go to the Chart of Accounts, hit new, and select a new credit card, I am presented with a screen which looks different then tutorials I've seen about creating credit cards (the picture of what I see is attached below). It will only allow me to create the credit card under the "credit cards" account, but I want the credit card under the personal funds bank account. My first question is how to create a credit card underneath a bank account instead of the "credit card" category.
My second question is, if I create a credit card underneath the business checking account and categorize transactions underneath it, will it mess up the total in the business checking account itself? When I'm on the banking screen, I can see the Bank Balance (as its linked with quickbooks) and the In Quickbooks balance. If I categorize transactions under a credit card under the business checking account, will it still count in the In Quickbooks balance? If so, what should I do instead? In short, will categorizing transactions under a credit card under the linked business checking account, will it mess up the In Quickbook balance and throw off its sync with the Bank Balance?
Sorry if my questions are stupid, but I am brand new to this program. Thanks!