Over the years I have seen many methods of recording credit card transactions. Some of the methods technically work, but they leave something out whether it is accurate dating of the transactions, detail of the individual transactions or the ability to reconcile the account to the statement. Using the method QuickBooks designed for credit cards addresses all of these shortcomings. Show
Set the Credit Card Up in the Chart of AccountsI have seen a lot of businesses just make the credit card a vendor, but that method leads to some of the shortcomings mentioned above. Set yourself up for success and create a new item in the Chart of Accounts. In QBO click the gear icon then Chart of Accounts. Click New in the upper right corner of the new screen. Then as shown above, for Account Type select Credit Card, give it a unique name (including the last four digits of the account number), and then select Save and Close. In QuickBooks Desktop products click Company then Chart of Accounts. In the lower-left of the new screen click Account and then New. Choose Credit Card as Account Type and click Continue. Name the account and then click Save and Close. Enter Transaction DetailIf you just enter the lump sum due to the credit card company you miss out on all the detail of the individual transactions. You will not know how much you spent with each vendor or have an accurate expense total per month since most credit card statements span calendar months. To enter the individual detail of each transaction in QBO click the “+NEW” button and then Expense. For Payment Account, select the credit card account created in the above step. For Category select the expense account that pertains to the specific transaction (e.g., office supplies or meals). In QuickBooks Desktop products click Banking in the menu bar and then Enter Credit Card Charges. As you enter each transaction use the date of the transaction and not the statement ending date. ReconcileGet started by click the gear icon in the upper right of QBO. Then click Reconcile. From there you'll see a screen like the above image. Select the credit card account you want to reconcile from the dropdown box. Ensure the beginning balance matches the statement and enter in the ending or new balance. Enter the ending date off the statement, which may not be the last day of the month, and click Start Reconciling. Compare the transactions on the next screen to the PDF statement checking each one off as you go. The goal is to get a $0 difference between QuickBooks and the bank statement. If you need help reconciling, setting up a new credit card or one that was never entered properly into QuickBooks drop us a line. How to Record Credit Card Payments in QuickBooksWhen you record a credit card payment for your business, you are keeping track of all your business financial expenses and maintain good report as well. Its importance can’t be overemphasized, and this article will help you with the steps you need to follow to achieve it. How to Record a Credit Card Payment in QuickbooksAs for Quickbooks credit card payment how to record, please follow the steps below!
If you have desire for how to record commission payments in Quickbooks, it will help you complete as well. How to Apply for Credit from an OverpaymentIn instances where your customer made an overpayment to your account, QuickBooks automatically set up credit. It is left for you choose how you want to apply the credit and below are some ways you can do that in QuickBooks.
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That and many more is what made FreshBooks one of the best alternatives to QuickBooks in the marketplace. Free Download or Buy PDFelement right now! Free Download or Buy PDFelement right now! Buy PDFelement right now! Buy PDFelement right now! How do I pay credit cards in QuickBooks?Pay a bill with a credit card. Select + New.. Under Vendors select Pay Bills.. In Payment account, select your credit card account.. Enter the Payment date.. Select the bill you want to pay.. Select Save, Save and print, or Save and close.. How do I record a credit card payment in QuickBooks online?This is the main way to record your credit card payments in QuickBooks.. Select + New.. Under Money Out (if you're in Business view), or Other (if you're in Accountant view), select Pay down credit card.. Select the credit card you made the payment to.. Enter the payment amount.. Enter the date of the payment.. What is the entry for credit card payment?Journal entry for credit card purchases: Immediate payment
To find out, subtract the credit card merchant fees from the total sale amount. This represents how much money your business actually made from the sale. In your journal entry, you must: Debit your Cash account in the amount of your Sale – Fees.
How do I charge a credit card in QuickBooks desktop?From your QuickBooks Desktop homepage, tap on the Banking menu on the top of the screen, then select Enter Credit Card Charges from the drop-down menu. Alternatively, you may click on the Enter Credit Card Charges icon under the Banking menu on the lower right-hand side of the homepage.
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