One of the most common areas of QuickBooks I see users making mistakes in is… (drum roll please 🥁) Credit cards!!
So I figure let’s get that fixed starting today! This video is a step-by-step guide to show you how to enter your charges and apply your payments properly (including partial payments), and how to reconcile your cards each month 🙌🏻
Are you ready to learn how to enter credit card charges into QuickBooks Desktop?
Grab a pen and paper and let’s get started 📝
If you’re looking for the Online version of this video click here
Process of Setting Up Credit Card
- Go up to “Lists”
- “Chart of Accounts”
- Go down to “Account”
- Choose “New”
- Choose “Credit Card”
- Click “Continue”
- Add “Details”
- Account Name: Remember to add the last 4 digits of your card number
- Checkmark Sub-account of, (**If only you are creating a Sub-account)
- Description
- Enter opening Balance **If you have a beginning balance
- Click “Save & Close”
Entering Beginning Balance
- In your Chart of Accounts, double-click the Credit Card Account, to enter your beginning balance details
Entering Credit Card Charges or Refund
**Grab your Credit Card Statement
- Go up to “Banking”
- “Enter Credit Card Charges”
- Select “Credit Card”
- Choose “Purchase/Charge” or “Refund/Credit”
- Purchased From”
- “Date”
- “Ref No.”
- “Amount”
- “Memo”
- “Expenses” Tab / “Items” Tab if you are using Inventory Tab
- “Account”
- “Amount”
- “Memo”
- “Customer: Job”
- “Class”
- Click “Save & Close”
**You can also enter your charges when you go to
- “Lists”
- “Chart of Accounts”
- Then double-click your Account to enter charges
Paying Credit Card
**You can enter them in Write Checks or Check Register
- Go to “Write Checks”
- Select the “Bank Account”
- “No.”
- “Date”
- “Pay to order of” (Credit Card is a Vendor)
- “$” amount
- Enter your breakdown under “Expenses” Tab
- Click “Save & Close”
**If you’re looking at your transactions and you want to know your Debits and credits, you can click Ctrl+Y to bring up your Debits and Credits
Reconciling
**Grab your Credit Card Statement
- Choose “Account”
- “Statement Date”
- Check “Beginning Balance”
- Enter “Ending Balance”
- “Finance Charge”
- “Date”
- “Account”
- “Class”
- Click “Continue”
- Checkmark the transactions to match the “Credit Card Statement”
- “Difference” should always be Zero
- Click “Reconcile” or “Leave” (If you’re not done yet with your reconciliation)
- “Make Payment” screen will show
- Click “Cancel”
- “Select Reconciliation Report” screen will show
- Summary
- Detail
- Both
- Click “Display”
- Go up to “Print”
- “Report”
**If you need to Edit a transaction, double-click it then open the transaction to Edit it.
**Hide transactions after the statement’s date end date – checkmark to hide all transactions after the for period date
**Click Modify if you need to adjust anything in your reconciliation
Finding Reconciliation Report
- Go up to “Reports”
- “Banking”
- “Previous Reconciliation”
- Choose “Account”
- Click “Display”
______________________
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Candus is an excellent teacher. I had created an excel spreadsheet this past year to reconcile my credit cards, but this video was awesome in teaching me how to do it within QuickBooks. Now I can reconcile my credit cards properly, so I can bill customers that we have made purchases for and I can also leave a clean transaction trail for my accountant
Hi Monica,
Thank you so much! We love hearing this. 🤩 ~Kindra/Team Candus
We have three business credit cards in the business name/employee name. I pay off all three cards each month. I have been entering in the amounts in excel, totaling them by category and then entering the balance from each category in a split account in my bank register in QB’s under the main credit card name. When I print off my Profit and Loss report, it does show under each category the correct type, name and memo. Is this still a good way to enter my credit cards? Each month I also match receipts to the statements to verify proof of purchases. (Wo to the employee who does not turn in receipts)
Hi Debbie,
You can do it this way if it’s easiest for you. Here is a video that might be helpful to you as well: https://canduskampfer.com/how-to-track-multiple-corporate-credit-card-accounts-in-quickbooks/
Have a lovely day,
Kindra/Team Candus ✨
Hi Candice, thank you for your tutorial. It is very helpful. I download from the bank cc transactions. I was taught that I needed to enter cc payments manually so that QB can match my entries with the bank. Unfortunately, I end up with duplicates and the payments in deposits and it is a mess. So I end up deleting the downloaded info and reenter my payment manually. Weird, but it happens every time so I don’t do it any more. Have you experienced this? Suggestions welcome. Thank you.
Hi Jenny,
Thanks for watching! I’ll add your question to our list of future topics. The best way to work with Candus is to join her free workshop here: https://canduskampfer.com/workshop.
Have a terrific day,
Kindra/Team Candus
Excellent review!
I’m so glad you enjoyed it Vivienne! Thanks for watching.
Kindra/Team Candus
Excellent training with clarity. I’ve learned a lot today. Thank you!
Thank you Susan! We love hearing that.
Have a great day,
Kindra/Team Candus
After reconciling, I manually add the total purchases to Credit card Vender. When I go to pay , I use pay vendor screen. The next month when I reconcile the payment does Not show . WHY? and how do I correct this.
Hi Janet,
We’ll add your question to our list of future topics. If you’d like to learn how to continue to work with Candus, you can register for her workshop here: https://canduskampfer.com/workshop.
Sincerely,
Kindra/Team Candus
I loved this video. I was already using properly with the exception of the “CANCEL” last option where you are asked to enter bill. I didn’t realize that I could just cancel out. I have a American Express card with a high balance and we only make payments and seldom pay off the credit card. I think that I have entered some payments incorrectly because the payments are not clearly or something… they are causing my qb to be out of balance. Please advise
Hi Penny,
The best way to learn how to work with Candus is to join her workshop at https://canduskampfer.com/workshop.
Have a great day!
Kindra/Team Candus