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Set up, use, and pay card accounts

A Card gives the holder an option to borrow funds for purchases or for paying bills. You can set up your card account in QuickBooks Desktop to help you keep track of the charges and the payments made for the expense.

  • A positive balance means you have pending charges on your card.
  • A negative balance means you have made overpayments (the amount you paid is more than your balance due).
  • A zero balance means you have not made any charges OR you have paid your balance due.
  • If you have card sub accounts: You can enter the charges and payments in the sub account and they will be available in their respective account register. The total amount of these charges and payments should be equal to the total balance for the parent account. You ONLY need to reconcile the parent account.

Set up card accounts

  1. From the Lists menu, select Chart of Accounts.
  2. Select Account, then select New.
  3. Select Card, then select Continue.
  4. On the Add New Account window:
    1. Type the Card Name.
      Note: If you are setting up a sub account, you need to check Sub account of. From the drop-down, choose the parent card account.
    2. Select Enter Opening Balance and based on your card statement, type in your Statement Ending Balance and Statement Ending Date then select OK.
    3. Select Save & Close.

Enter card charges

This puts the amount you owe in the card account (Other Current Liability) in the Chart of Accounts.

  1. From the Banking menu, select Enter Card Charges.
  2. Select the Card drop-down, then choose the appropriate account.
  3. Purchase/Charge should be automatically selected. If you want to record a credit or refund you received through the card, select the Refund/Credit instead.
  4. Select the Purchased From drop-down and select the supplier.
  5. Make sure the date is correct.
  6. (Optional) Enter a memo explaining the charge (or refund).
  7. Go to Expenses or Items tab and enter the expenses/items you want to track.
  8. Select Save & Close.

Pay card charges

This reduces the Card amount by the amount you pay through the Write Checks window.

Note: We recommend you pay the card at the end of a reconcile, but you can also make a card payment using the Write Checks feature.Your payments will show up in your card register along with your charges and you can reconcile the account as normal.

  1. From the Banking menu, select Write Checks.
  2. From the Bank Account drop-down, select the bank account you want to use for paying the card.
  3. Select the date of your payment.
  4. In the Pay to the order of drop-down, select the name of your card company.
  5. Enter the amount of your payment.
  6. Select the Expenses tab and select your card account.
    Note: If you are making the payment for the sub accounts, enter a line for each sub account then type the amount you want to pay. The total amount should be equal to the total amount reflected for the parent account.
  7. Select Save & Close.

Pay card charges (after reconciliation)

After your card account is reconciled, there are 2 options to pay a portion of the outstanding balance;

Enter card annual and finance charges

  1. From the Lists menu, select Chart of Accounts.
  2. Find and double-click the appropriate card account.
  3. At the blank line at the bottom of the register, select Payee field and choose the card company.
  4. In the Charge column, enter the amount.
  5. Select the Account drop-down and choose the expense account you want to use for tracking annual, finance, and other bank service charges.
  6. Select Record.