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KatL
Level 3

Credit Card balance query

Hi, I have entered an opening balance for a credit card that the company has been using but wasn't originally put through the accounts - so I am wanting to do it properly.  I entered it and it shows as a credit on the trial balance (which I believe it correct for a credit card).  However I've noticed that in the Dashboard screen on my company it says Bank balance with a minus sign and In Quickbooks as a positive - is this right - to me it doesn't feel right?

 

Solved
Best answer March 26, 2021

Accepted Solutions
KatL
Level 3

Credit Card balance query

Thank you JessT - that is exactly what I wanted to know.  I did understand that they are viewed differently by the cc company versus to owed by the business you're operating in.  However I wanted to make sure that it was displayed that way so thank you for confirming.  The test drive is really useful as well and I will be using this.  Thanks again 

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14 REPLIES 14
EmmaM
QuickBooks Team

Credit Card balance query

Hello KatL Yes that is right it would show as credit and then reduce down as you pay off the card balance in the chart of account account history. If you go to the settings cog and reconcile and reconcile for that period does the balance reconcile or are there missing transactions?

KatL
Level 3

Credit Card balance query

That's what I'm confused about it is showing correctly in the TB but I just don't feel it can be right when there is a difference on the Dashboard - there isn't anything to reconcile or anything missing.  One thing if its a negative (which obviously a credit card would be as owing) what do you put in the Ending balance in QB should you be  putting it in with a minus sign in first before the number in the attached file of the reconcile screen?

Should the beginning balance be a minus as well?  I've looked at all the online instructions and it doesn't say.

Rea_M
QuickBooks Team

Credit Card balance query

The amount in the Ending balance field should agree with the one indicated on your bank statement, @KatL. Let me share further details about this.

 

When you reconcile your credit card account, the amounts should match your bank balance. This means you need to put a minus sign when it's a negative amount and that's the same goes with your Beginning balance. Once everything is all set, you can start your reconciliation in QBO. Just make sure you've reviewed, matched, and categorised all your transactions especially when your account is connected to online banking.

 

For the step-by-step guide, you can refer to  this article: Reconcile an account in QuickBooks Online. It includes steps about reviewing your opening balance, starting your reconciliation, and comparing your statement with QuickBooks.

 

Additionally, reviewing your accounts regularly is a must in QBO. This way, you're able to make sure the amounts match your real-life bank and credit card statements. To further guide you in starting a new reconciliation, fixing any possible issues, and editing the completed ones, you can refer to this article: The reconcile workflow in QuickBooks.

 

Let me know in the comments below if you have other reconciliation concerns or inquiries about managing your credit card transactions in QBO. I'm just around to help. Take care always.

KatL
Level 3

Credit Card balance query

Thank you - that is helpful - I still have the problem though the starting balance is a positive but I thought  and what you say it should be a negative (e.g. the amount outstanding to the credit card company).  I then enter a negative for the new closing balance from the credit card statement and it just won't reconcile, I have the right enteries ticked to be included.  I believe the opening balance was entered correctly as Cr £x to Credit Card a/c and Dr £x to opening balance a/c.  Or am I being stupid?  

GeorgiaC
QuickBooks Team

Credit Card balance query

Hi KatL, when entering an opening balance for a credit card account you would debit the journal entry with the opening balance amount to post a negative balance to the CC account. You can edit the journal that you have created for this and should then see this reflected within your Chart of Accounts, please get back to us below if you're continuing to have difficulties reconciling this. 🙂

KatL
Level 3

Credit Card balance query

Hi again, thats what I believe my opening balance is - see attached.  I've also checked and the account is set up as a credit card which would appear to be correct. So why isn't this working, I am stumped?

Ashleigh1
QuickBooks Team

Credit Card balance query

Hello KatL can you please send us a screenshot of the account history on the credit card showing the journal as we would have thought it would show as in the charge column increasing owing balance. 

KatL
Level 3

Credit Card balance query

Thanks Ashleigh for you help - see attached

EmmaM
QuickBooks Team

Credit Card balance query

Hello KATl, Looking at the chart of account that is showing correctly it shows the opening balance on the card 8834.82 and then as more charges are made in date order it goes up and then down when payments are paid off the credit card, as mentioned on the credit card it is different to the bank account where it will show as positive the  owing balance the only time the figure would be in minus is if the credit card was in credit as the credit card is not an asset and shows in the creditors section of the balance sheet.

KatL
Level 3

Credit Card balance query

Emma - I do think I've done it right, thank you but why then is the bank balance showing as a minus and the ending balance is showing as positive or is it just a thing that Quickbooks does it this way for credit cards. If you look at the screen shot from my previous comment above.  This is also shown in the Dashboard - see attached which is pulling the 2 figures through but they are different and I don't understand why?

 

Also, second question to this - does it means that when you reconcile you don't put a minus before the ending balance then (as recommended earlier) as this throws out the reconciliation and gives a difference?

 

Angelyn_T
QuickBooks Team

Credit Card balance query

Hi Kat.

 

I appreciate you for following up with us here on the Community page. I'm here to share with you some insights about the balances of your account.

 

Usually, the QuickBooks Balance is the total balance of all bank transactions that are added or matched to QuickBooks. While the Bank Balance is your bank's actual balance from the last bank feed update. In most cases, the credit card will show as negative since this is a liability account showing the balance owed. The bank account is an asset account and will show the balance as a positive amount. Once you pay off the credit card, the balance will show as 0.00 or a positive amount.

 

On the other hand, with regards to your reconciliation and proper tracking of the account's ending balance, you can open this link as your guide: Start a reconciliation.

 

For more tips about QuickBooks and bank feeds, you can also check out the topics from this link: Find help with bank feeds and reconciling accounts.

 

If you have any other QuickBooks or banking questions, please let me know by adding a comment below. I'm more than happy to help. Have a good one!

KatL
Level 3

Credit Card balance query

Thank you Emma, for your review of the Account History - which you say looks correct.  Please can you therefore explain if it is correct or not that on the Dashboard and in Account History as highlighted in yellow that these figures are correct because one is a minus and one is not (eg. Bank Balance for Credit Card is minus and In Quickbooks is positive)?  I am trying to work out if this is correct or if something is still wrong as to me it looks like there is a difference between the two or is that the way Quickbooks shows the Balance pulled from the credit card feed?  Let me know if you don't understand what I mean?

JessT
QuickBooks Team

Credit Card balance query

Hi KatL,

 

That's just how credit card balances are presented on the Banking page in QBO. You can also notice that on our test drive.

 

Please note that by nature, a credit card is a liability to your business. Thus, if you have a positive credit card balance in QuickBooks, it means you owe money to the bank. Otherwise, the bank owes you money. To a bank's view, it's the reverse.

 

Feel free to go back to this thread if you have other questions in mind.

KatL
Level 3

Credit Card balance query

Thank you JessT - that is exactly what I wanted to know.  I did understand that they are viewed differently by the cc company versus to owed by the business you're operating in.  However I wanted to make sure that it was displayed that way so thank you for confirming.  The test drive is really useful as well and I will be using this.  Thanks again 

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