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Level 1

how to account for credit card payments

Hi All, I'm a new user and am still in the process of setting QB up. I've added my accounts and have come up against a roadblock. If I pay a credit card each month and some of those charge are the accounts I've set up, for instance my utility bill gets charged to my CC, and I pay for gas with a cc, but also want to know what my expenses are for gas, how do I track that? Do I have to go through the credit card stmt and enter each and every charge?

I know I can download the check register and credit card charges from my bank into the register in QB, but don't exactly know to apply the individual charges from the credit card total or if it's a seperate issue.

 

Also, same for lumped payments to another bank account for several different expenses. This is similar to the credit card question, I pay/move money each month to another account for annual expenses like car ins, homeowners ins, etc. I move a lump sum each month, but it goes toward several of the accounts set up in QB. How do I track that in QB?

Any info would be greatly appreciated.

Thanks.

 

2 Comments
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QuickBooks Team

how to account for credit card payments

Let me help you in recording credit card payments, Einrocklin.

 

I suggest creating an expense transaction through creating a check in QuickBooks Desktop to every payment you've made. You can create a separate expense account to every type of payment for easier tracking. For instance, we can create an expense account for gas and another one for utility bills. Please follow the steps in this article on how to create a new account. Then, here's how to create an expense transaction:

  1. From the Banking menu, select Write Checks.
  2. On the Bank Account drop-down, select the account you used in paying it.
  3. Go to the Expenses tab. On the Account column, select the expense account you've created.
  4. Enter the amount and select Save & Close.

When you download your bank transactions, you can simply match them. Also, you can make use of the Transfer Funds if you already added all your accounts in QuickBooks Desktop. That way, you record the money you send to another account for annual expenses. From Banking, just select Transfer Funds.

 

It'd also be best to reach out to your accountant for some advice on how to record these payments.

 

Comment below if you have more questions. Have a great day!

Highlighted
Level 13

how to account for credit card payments

@Einrocklin 

As another option, you may prepare the data in XLS and utilize the 3rd party tool to import them in bulk.

https://transactionpro.grsm.io/qbd

https://partners.saasant.com/affiliate/idevaffiliate.php?id=5051_2

 

The template should be like this

Credit Card AccountPayeeTransaction DateRefNumberMemoAddress Line1Address Line2Address Line3Address Line4Address CityAddress StateAddress PostalCodeAddress CountryVendor Acct NoExpenses AccountExpenses AmountExpenses MemoExpenses ClassExpenses CustomerExpenses BillableItems ItemItems QtyItems DescriptionItems CostItems ClassItems CustomerItems BillableCurrencyExchange Rate
QuickBooks Credit CardBarnes and Noble01/09/20201 1 Main Street   AnytownNY12345USA Misc Supplies100             
QuickBooks Credit CardMcDonald's03/09/20202 1 Jones Street   AnytownNY12345USA Meals25  ABC CompanyY         
QuickBooks Credit CardJoe's Taxi05/09/20203 1 Felt Ave   AnytownNY12345USA Transportation200             
VisaGulf Gas01/09/20204 1 North Ave   AnytownNY12345USA Fuel25             
VisaGulf Gas01/09/20204 100 South Street   AnytownNY12345USA Meals50             
VisaGulf Gas01/09/20204 2 Banks Street   AnytownNY12345USA       Widget A1Widget A10 John DoeY  

 

Jut my 2 cents.

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