One of the most common questions I get from clients is how to enter and track credit card charges in QuickBooks. There are several ways to enter credit card charges in QuickBooks. Today, I’m going to teach you the best way in this short QuickBooks training.
Open QuickBooks → Go to the Banking Menu –> Select Enter Credit Card Charges –> The Credit Card Purchase/Charge window will appear. This window is similar to the write checks window. This is where you will enter the credit card information, just as you would if you were writing a check to your vendor. Once you’re finished, don’t forget to click Save.
Time Saving Tip: I agree, entering credit card receipts can be a tedious and time consuming task. If you’re interested in saving time, click on the “Download Credit Card Charges” button at the top of your screen. QuickBooks will connect with your credit card company and download your credit card transactions for you! As the download takes place, QuickBooks double checks your previous entries to ensure no duplicates are recorded. A task that used to take an hour now takes minutes!
When your monthly credit card statement arrives, you will want to reconcile your account, just as you would a bank account. To do this, go to the Banking Menu –> Select Reconcile –> Choose the Credit Card Account. The credit card reconciliation process is exactly the same as a bank reconciliation. Enter the credit card statement date, the account’s ending balance, and you can even enter any finance charges on this screen. Next, QuickBooks will take you to the reconciliation window where you can click off the transactions that appear on your credit card statement. Check off the matching purchases, enter any missing transactions, and make sure you have a zero difference balance when you’re finished. Then click the “Reconcile Now” button.
Once you click Reconcile, QuickBooks will automatically ask you if you would like to create a check to pay this credit card bill now or if you would prefer to create a bill to pay the credit card company later. Select the option that works best for you. You can also decide whether to pay the balance in full or only pay a portion.
Tip: One more freebie QuickBooks tip! Whether you decide to pay now or later, don’t forget to enter the expense account as your credit card account. The expenses that showed up on your credit card statement have already been recorded and expensed in QuickBooks. This will reduce your credit card liability account to reflect your payment.
There you have it – an easy and accurate way to record, track, and pay your credit card bills in QuickBooks. Don’t forget my QuickBooks help as it’s a time saving tip for those not big on data entry or just need an extra hour in their day!
Michelle is the owner of Trailhead Accounting Solutions CPA, LLC, an Erie, CO based CPA firm focused on providing small and mid-sized businesses with day-to-day accounting, bookkeeping, virtual CFO, and business solutions. Michelle is a CFO turned consultant who loves working with small businesses and entrepreneurs. When she’s not crunching numbers, she can be found hiking, remote camping, gardening, quilting, and hanging out with her family.