Sunday, October 6, 2013

Recording Payments by Credit Card

I have clients who send me their credit card statement whereby I make a single entry in QuickBooks, allocating each charge to the correct expense account.  Other clients give me their charge receipts each week for me to enter.  Which method you use is personal choice with the same end result.

If you are going to record the charges as they are incurred, then you will need to create a Credit Card account.  I usually name the account by the type of card (Visa, MC, AmEx, etc.) and the last four digits of the card account.  This is especially helpful if there is more than one credit card account.
To enter the charge, you can either enter the bill and then pay it by the Credit Card account or “write a check” on the Credit Card account.

When the statement arrives, compare it to the balance in the Credit Card account.  If all of the charges have been entered, then you can write a check for the total, thereby relieving the balance in the Credit Card account.

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