QuickBooks tracks credit cards using a special account type called (oddly enough) “Credit Card”.
This is a special type of liability account that lets you enter individual charges for each transaction. Once you have credit card charges to enter into QuickBooks it is actually a very simple process. You simply click on Banking and then Enter Credit Card Charges. As you will see below from the “Credit” example the bottom of the screen is no different than a check or a bill. So you follow the form and enter the information. Where was the item purchased, the date of the credit card charge and of course the amount. Then at the bottom of the credit card charge screen in QuickBooks you can split the transaction total amongst different expense accounts, job cost the expenses or even enter inventory receipts using the “Items” tab at the bottom.
Each month when you receive your statement from your credit card company you will need to reconcile it. Reconciling a credit card statement in QuickBooks works exactly like reconciling a Bank Account. You choose Banking, then Reconcile Credit Card (or just reconcile). Then choose your credit card account from the drop down.
The video will demonstrate what this looks like when you are entering charges, making payments and reconciling the account. Then in case you don’t know how, I demonstrate how to set up credit card accounts in QuickBooks.
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