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Lee-Henderson
May 12, 2025
Solved

I am trying to add a new CC and link it to our bank but it wont let me save it as a liability account. What type of account should it be?

  • May 12, 2025
  • 1 reply
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I am trying to add a new CC account and link it to my bank. I have tried to do before I connect to the bank and after I've connected and it sees the account. It will not allow me to give it an account number under my Short Term Liabilities account. It says it's not the correct account type. What account type is a CC considered if not a liability? Where should I put it?

Best answer by JanbonN

Since you've configured it as a Bank/Credit Card (CC) account, this is how QuickBooks recognize and categorize this account, Lee.

 

To clarify, it's important to understand that within QuickBooks, the transactions recorded in your CC account represent liabilities. This means each purchase or charge you make and enter into this account increases your liability, reflecting money you owe. However, the Credit Card account itself is not considered a liability. It serves as a container in QuickBooks for tracking credit transactions, allowing you to manage your debts and payments effectively.

 

You can refer to these article about managing your bank transactions:

 

 

Please return to this thread if you have other questions with subaccounts in QuickBooks. We're here to answer them.

 

1 reply

G
GebelAlainaM
May 12, 2025

Thanks for reaching out to the Community about your concern regarding saving your Credit Card (CC) account under the Short Term Liabilities account, Lee. Let me clarify some details about it.

 

A CC account is where you're liability transactions recorded not the account itself. If you've already connected your CC account in the Chart of Accounts, you don't need to put it under your Short Term Liabilities account.

 

I suggest consulting with your accountant to ensure you'll be guided when selecting accounts in QuickBooks and avoid messing up your books. If you’re not affiliated with one, check our ProAdvisor page, and we’ll help find one from there.

 

Please check out this article for more details about accounts and detail types in QuickBooks: Learn about account types and detail types in QuickBooks Online.

 

Additionally, visit this article for future reference in reconciling accounts so they always match your bank and credit card statements: Reconcile an account in QuickBooks Online.

 

If you need help managing your chart of accounts, you can partner with QuickBooks Live Experts and feel more confident. Find out more about QuickBooks Live Bookkeeping.

 

Don't hesitate to respond to this thread if you have additional queries about managing your accounts in QuickBooks Online, Lee. We'll be glad to help you.

L
Lee-HendersonAuthor
May 12, 2025

Thanks for responding.  Let me provide a little more info:

I just got this new card from the same bank that has our operating accounts that are already linked.  I want to add this before there are any transactions or balance - easier that way.  I have tries to add it as a new account before linking, and I have to add it after linking and it's ready to match it.  I am adding it as a new Bank Credit Card Account type in the selections.  My Short Term Liability account is 2570 so I am trying to add this as a sub of that - 2570.1 - when assigning a number.  Both times it states I can not do that because it is not the same account type as the one I'm trying to sub it under.  So if it doesn't see a Bank/CC Account as a liability type, then what does it see it as? 

J
JanbonNAnswer
May 12, 2025

Since you've configured it as a Bank/Credit Card (CC) account, this is how QuickBooks recognize and categorize this account, Lee.

 

To clarify, it's important to understand that within QuickBooks, the transactions recorded in your CC account represent liabilities. This means each purchase or charge you make and enter into this account increases your liability, reflecting money you owe. However, the Credit Card account itself is not considered a liability. It serves as a container in QuickBooks for tracking credit transactions, allowing you to manage your debts and payments effectively.

 

You can refer to these article about managing your bank transactions:

 

 

Please return to this thread if you have other questions with subaccounts in QuickBooks. We're here to answer them.

 

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