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pbemb88
July 3, 2024
Question

Paid Business Credit Card w/ Credit Card Rewards & Personal Checking Account

  • July 3, 2024
  • 1 reply
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My business credit card transactions are automatically imported. My question is how do I record the transaction because as it appears automatically, it is showing as a "Other income:Credit card rewards". This transaction was paid with credit card rewards but I am using them to pay of the credit card so its not income. How would I categorize this transaction (Payee & Category). Also, I paid the same business card with my personal checking that is not linked to QuickBooks. How would I go about categorizing this (Payee & Category).

1 reply

BigRedConsulting
BigRedConsulting
July 6, 2024

It doesn't matter how you are paying the credit card account balance, or really if you ever pay it. If you purchased something for your business that is a legitimate business expense, then it's a business expense.  Record that expense in your credit card register like you'd record a check in your bank account.

 

If you paid the business credit card with your personal funds, which isn't really a good idea, then that payment can be recorded as a transfer between the credit card account and an owner's equity account, an increase to the equity account.

 

I'm not really sure but if the points used to pay the bill are a result of business charges then I support they could be recorded as a sort of contra-interest expense or contra-bank fees expense.

 

If they're a result of personal charges, then that could be another transfer to an equity account.

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