QuickBooks accounting software helps us to handle our business accounting and financial activities. QuickBooks is used by many accountants and bookkeepers. Because it let you manage your invoicing, track sales, send estimates, cash flows, reporting, and Credit Card Account in QuickBooks. Running your business successfully has now become so much easier with QuickBooks. If you are a businessman in today’s world you know that’s it’s quite impossible to run a business in this techno-world without a bank account. Wouldn’t it would be best if you can use your credit cards along with QuickBooks Application. You can set up and use your Credit Card Account in QuickBooks by following these manual steps from this post.
In this article, we will learn how to set up, use, and pay credit card account in QuickBooks. Take a look at each step carefully to learn how to do so. Having a credit opens a lot of doors for you it allows you to borrow funds for your expenses such as purchases and bill payments. You can track the charges and payments you made by setting up your credit card account in QuickBooks Desktop.
Set up Credit Card Account in QuickBooks
If you haven’t already set up your credit card account in your QuickBooks application, you can do so by following the simple steps shown below-
- Open QuickBooks Desktop account.
- Reach out to the company menu and choose Chart of Accounts from the options shown.
- Create a new account by selecting the account and choosing the new option.
- Choose Credit Card, and Continue.
- On the Add New Account window, fill in the credit card name.
- Note: If you are setting up a sub-account, choose the Subaccount of the checkbox, then choose the parent account from the dropdown arrow.
- Choose Enter Opening Balance… then fill in the amount, date, and all other required information.
- When you are done tap on Save & Close.
Enter credit card charges
To enter the credit card charges in QuickBooks to put the amount you owe in your credit card account to enter the other current liability.
- Open the QuickBooks software
- Reach out to the Banking menu, and choose Enter Credit Card Charges.
- Choose the credit card account from the Credit Card dropdown arrow shown on the screen.
- Choose the option which is appropriate for you from Purchase/Charge and Refund/Credit. Purchase/Charge will be selected by default if you don’t choose anything.
- Tap on the vendor from the Purchased From dropdown arrow.
- Select the appropriate date. And fill a memo explaining the charge or refund for future reference if you want.
- Select the Expenses or Items tab and fill in the expenses/items you want to track.
- When you are done and all the information is correct tap on Save & Close.
Pay credit card charges
A credit card is not something that gifts you the money you have to pay back what you have borrowed once. So to pay back and reduce the amount you owe follow the steps shown below-
Pay credit card charges (before reconciliation)
- Reach out to the Banking menu, choose the Write Checks.
- Choose the bank account you want to use for paying the credit card from the Bank account dropdown arrow.
- Select the date of your payment. And the name of your credit card company from the Pay to the ‘order of’ the dropdown arrow.
- Fill in the amount of your payment in the appropriate field.
- Choose the Expenses tab.
- From the ‘Account’ dropdown arrow, choose your credit card account.
- When you are done tap on Save & Close.
Remember that, you need to follow the step before the reconciliation in QuickBooks Online.
Pay credit card charges (after reconciliation)
You basically have two options after the reconciliation of your credit card account. Either you can write a check and pay immediately or you can Enter a bill for paying it later in the future.
Enter credit card annual and finance charges
Follow the steps shown below to fill in the credit card annual and finance charges-
- Reach out to the Company menu, and choose Chart of Accounts.
- Choose the credit card account in which you want to enter annual and finance charges.
- Choose the credit card company from the Payee dropdown arrow.
- Fill the amount in the appropriate field(charge amount field)
- Choose the expense account from the Account dropdown arrow. Select the account you want to use for tracking annual, finance, and other bank service charges
- Finally, click on ‘record’ and you are done.
As we have discussed how to set up, use, and pay credit card account in QuickBooks. We have provided the things you need to notice to set up, use, and pay credit card account in QuickBooks. So we hope that now you use your credit card accounts in QuickBooks effortlessly. In rare cases, these methods may not work, so let us know if it is so for you.