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vrw
February 19, 2024
Question

Company credit cards

  • February 19, 2024
  • 2 replies
  • 0 views

Please tell me how to clear individual employee balances on a company credit card. I remember someone telling to write a "fake" check but don't remember the details.  The other was to write a journal entry but I'm just the "in office" bookkeeper and don't want to upset the accountant.  How-to's for each or any technique would be most appreciated!

2 replies

A
AbegailS_
February 19, 2024

Hi there, @vrw. I'm here to help you with your concern.

 

Journal entries are used as a last resort to enter transactions between accounts in a specific and balanced way. If you need to clear the balances of your employees' company credit cards, I recommend creating a journal entry. 

 

Keep in mind that creating a journal entry requires understanding debits and credits. I suggest consulting with your accountant to ensure that you have accurate information.

 

Follow these steps to create a journal entry:

 

  1. Select the + New button.
  2. Choose Journal entry.
  3. On the first line, select an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
  4. On the next line, select the other account you're moving money to or from. Depending on if you entered a debit or credit on the first line, enter the same amount in the opposite column.
  5. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
  6. Enter information in the memo section so you know why you made the journal entry.
  7. Hit Save and new or Save and close.

 

For more detailed information on creating journal entries, please check out the Create journal entries in QuickBooks Online article.

 

Additionally, here's a link that can help you reconcile your accounts effectively in QuickBooks Online (QBO): Reconcile an account in QuickBooks Online.

 

I’d really appreciate any additional information. Please leave a comment and add it to your response. I’ll do everything I can to help you. Have a good one!

V
vrwAuthor
February 21, 2024

Thanks so much for your prompt reply!  Just to give you a little more info, I have all the employees' cards listed as sub-accounts under the main cardholder.  I have a reconcile account that all the sub-accounts funnel into.  Since payments are credited to the main account holder only, I always had unpaid balances on the employees' accounts and credits (overpayments) on the main account. 

 

What bothers me, though, is that at one time there was a way to take the payment and break it down, assigning the amounts needed  to clear the individual employee cards.  You could choose a dollar amount  and if it was less than the payment you made, you would have the option of selecting another card number to credit the payment to.  I've either forgotten how I used to do that or it's no longer available. 'Just to double check, when doing the journal entry, do I debit the account I'm taking money from or the account I'm paying off?  All I remember about bookkeeping in high school was that debits and credits seemed backwards when applying them. I so appreciate your help. ~ (removed)

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