Pay your credit card charges to reduce the amount you owe. You will now be taken to the Credit Card Register screen for the credit card you just created. Click on the “Add CC Expense” link to expand your first data entry line. Then you’ll connect the subs to the bank feed but NOT that main card. This allows you to get the feeds to each individual card, but reconcile at the main bank card level. Choose your credit card account from the drop-down list and then click the OK button.
- To expand the transaction, you can click anywhere in this red line except the Match link on the checkbox on the left.
- If this is a recurring transaction — say, a rent payment — you can click on the “Create rule from this transaction” link (f) to open the rules screen.
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We’ll cover the regular method and a shortcut to consider. If QuickBooks isn’t for you, read all our reviews of the best accounting software. In this article, we are going to provide you with 3 different methods of entering credit card charges in QuickBooks. Although it’s convenient to use your business credit card to pay for purchases, it means you have to account for those transactions in your bookkeeping. QuickBooks is a software tool that allows you to easily account for all your transactions and keep them in the record. Okay, if you don’t already know this, although your customers probably love to pay you with credit cards, customer credit cards create a headache for you.
Whether you choose the first or the second method for entering credit card charges in QuickBooks, you still can match the transaction from the Banking screen like this picture. When you make a purchase, you’ll want to enter a bill then use the Pay bill feature to mark the items paid. Then match it to the credit card transaction under bank feeds. If you have a very small number of credit card transactions, this may be the best method for you. Or if you have a credit card that you no longer use that is no longer synced to your bank feeds, but you still need a record of transactions, this is a good method.
Choose this option if you do not use bank feeds or upload receipts from your computer or phone. Click into the transaction as shown under the Match section to expand it. You’ll notice more fields and options in this expanded view than those for Match and View. In fact, this is essentially a shorter version of the Expense screen shown in the first method for entering credit card charges we covered.
Let’s take a look at sending invoices — both what happens on your end, as well as your customers’. Download the files the instructor uses to teach the course. Follow along and learn by watching, listening and practicing. If you accept a credit card, you know how this works, right?
- Whether you choose the first or the second method for entering credit card charges in QuickBooks, you still can match the transaction from the Banking screen like this picture.
- If you are manually capturing these expenses on a journal entry, then you debit the expense acct for the individual charges and credit credit card payable.
- When you are certain about the information in the Match field, click the Match button.
- But the person who explained forgot to mention that even if the expense is created successfully, you should adjust the date of the expense to be between the period you are trying to reconcile.
- You’re simply matching a transaction you’ve already entered to the transaction in the bank feed — in short, reconciling it.
- CC Credit is for payments on the card’s balance but CC Expense is for purchases with your card.
After clicking the New button, you will see a pop-up window where you need to set the Account Type (a) to credit card and the Detailed Type (b) will update accordingly and automatically. The Name (c) will default to “Credit Card” but it’s recommended to be changed into the account name and the last 4 digits of the card number. After importing your transactions from your bank or from a manual import, you can use the Banking screen to classify stuff. You also have options to add, view, or match transactions. When you complete entering, you will be directed back to the Bank screen where you could start matching or adding transactions that are imported.
Recording a credit card charge
Use the drop-down menu to choose the earliest date you used the card. A description (d) isn’t necessary unless you want to enter a note about the card. You’ll typically not use the Sub-Account (e) feature for a credit card, either.
To create a sales receipt, just click the Quick Create button (scroll up a bit and check out that sweet GIF again, if you want), then choose Sales Receipt. Complete the form as you normally would, and choose the type of payment method you’ve just added. In addition to creating invoices and sending them to customers, you can have your customers complete a payment authorization form and store their bank or credit card information. QuickBooks Online and QuickBooks Credit Card Payments are PCI compliant, and once you enter the payment details, all but the last four digits are masked. QB Payment doesn’t offer such feature.
Now that you know how to enter your bank charges and interests, you can be sure to have a balanced reconciliation. I have just set up 2 loan liability accounts and made sub accounts for the interest underneath them… To account for your transactions correctly, you’ll have to exclude the initial transactions that you’ve imported and categorized. Once done, format the file correctly and then reimport it to your QuickBooks Online (QBO) account.
QuickBooks Online marked as paid
This helps you ensure you haven’t made a data entry error. Yes, you’re correct with recording the bill and using Pay Bills to pay the credit card purchase. Also, entering a credit card credit will be your best option when you move it into an AP if you pay more than the previous balance during the billing period. This will lead you to reconcile the account correctly.
Option 1: Enter transactions and match them to the bank feed.
I can help you locate the service charge field when reconciling in QuickBooks Online (QBO). The only fields financial leverage ratios I have are Beginning Balance, Ending Balance and Ending Date. A CSV file Amex transactions, 3 column.
Enter the date of the transaction in the Payment Date field, then select the correct payment method. Use the Pay down credit card option under + New to record credit card payment. You can enter the credit card cash advance in QuickBooks Online like how you did with the charges, payments, and credits.
Personally I am turning off the option to pay with a credit card. Quickbooks should just be able to add a flat percentage if (and only if) a customer chooses to pay with a card. Please get back here in this thread if you have any follow-ups about credit card fees. I’d also appreciate it if you can add updates on how the recommendation goes. I’m just around the corner and ready to help whenever needed.
When the new screen pops up, you will enter the name of your financial institution by selecting the correct option from the list in the drop-down box. In the Payment Date field, enter the date of the transaction and select the payment method you want. You may need to fill in a reference number if requested. There are 3 ways about entering credit cards in QuickBooks Online you should know, now let’s take a closer look at each of them. Keep me posted if you still have questions or concerns with credit card account. I’ll share the steps on how to record a credit card purchase and interest in QBDT for Mac.
Managing your QuickBooks credit card payments account
By these steps, books are surely accurate. Don’t hesitate to leave a message below if you have follow-up questions about your transaction. The Community is always here to lend a hand. You can use this article for your future reference about reconciling accounts in QuickBooks Desktop. It has complete instructions to ensure everything is properly recorded. Make sure your credit card is synced with QuickBooks Online so you can easily import transactions to your register.