How do I handle the accounting for purchases made on a credit card? Do I create a credit card account in my chart of accounts then record the purchases through it?

Did you use your personal credit card to pay your business expense?

I'm glad to see you here, Char4ira.

I'll be here to guide you in recording your purchases paid via your credit card account to keep track of your expenses.

Creating a credit card category in your Chart of Accounts (COA) is correct. After that, you can record credit card purchases via Expense.

Here's how:

1. Click the +New icon and select Expense.
2. Select a Payee or tap Add new if the vendor you'll be paying isn't there.
3. In the Payment account field, select the appropriate account you created in the COA for credit card purchases.
4. Enter the necessary details in the Category details section.
5. Once done, hit Save and close.

On top of that, I recommend reaching out to your accountant to guide you in placing your credit card transactions in the correct accounts. Also, to avoid discrepancies in your book.

Additionally, feel free to read this article if you want to learn to balance your bank and QBO transactions: Match online bank transactions in QuickBooks Online.

You can return here if you have additional queries about managing your credit card purchased transactions. We'll be willing to lend a hand. Take care, and have a pleasant week.