Reconciliation corporate credit card with multiple users

Hello, @friendshipinc. I'm happy to provide insight into reconciling multiple accounts in QuickBooks.

You can set up the individual cards as sub-accounts of your main card. This way, your books will be organized and when reconciling, you would reconcile the parent account, so this would reconcile all the sub-accounts at once.

Here's how:

1. Click the List menu and choose Chart of Accounts.
2. Select the  Accounts menu at the bottom of the window, then click New.
3. Click the Type drop-down list and choose your sub-account type:
4. Put a check in the box labeled Sub-Account of and choose a parent account from that drop-down list.
5. Click the OK button.

I'd suggest consulting your accountant on which card you put the interest charge. They can provide further guidance on how to properly reconcile the multiple credit cards to ensure your books will be accurate.

Also, before connecting to online banking, you need to figure out how your bank sends the downloaded transactions. If the transactions download to one account, connect only the parent account. If the transactions download to the individual accounts, connect the subaccounts and not the parent one.

I've included a few articles you may find beneficial that cover reconciles, sub-accounts, and credit card accounts in QuickBooks Desktop below. 

•  Set up, use, and pay credit card accounts
• Reconcile an account in QuickBooks Desktop
• Learn about the chart of accounts in QuickBooks

You can always get back to us if you have any other questions, I'd be happy to answer any questions you may have. Have a great day!

Thank you for your response, however that is not the issue, accounts where setup separately, however for all these years, reconciliation were done on the main account, not each individual account, trying to correct this.

We have a high balance on a couple of the accounts, however the top-level account has the correct balance.

setup like so.

Corporate_  2000.00  balance is correct

• carda         100.00
• cardb         10,000.00
• cardc          500.00
• cardd         5000.00

carda  thru cardd are credit that has accumulated over the years because of improper reconciliation.  How can I fix it?

We are a small non-profit organization that only use an accountant for taxes.

Thanks for making it here, friendshipinc.

I can provide guidance on how to correct the balances of your individual accounts.

A discrepancy in balance can be caused by an edited or deleted transaction. You can review your Reconciliation Discrepancy report to check if this is the case. I also suggest reaching out to your accountant to guide you with the correct accounts for debit and credit. You can also find an account by clicking on this link: Find an accountant.

Here's how to run the Reconciliation Discrepancy report:

1. Go to the Reports menu,
2. Hover on Banking,
3. Select Reconciliation Discrepancy.
4. Choose the bank account, then click OK.

If there are transactions that cause the discrepancy between your balances, edit them with the correct details (or recreate deleted ones). Before doing this, back up your company file. 

Once done, undo the previous reconciliation: 

1. Go to the Banking menu.
2. Select Reconcile.
3. Choose the bank account, then click Undo Last Reconciliation.

You may find these articles helpful in case your accounts in QuickBooks Desktop don't match your bank statements at the end of reconciliation: 

• Fix beginning balance issues in QuickBooks Desktop
• Fix issues when you're reconciling in QuickBooks Desktop

Feel free to visit this guide when reconciling your account: Reconcile an account in QuickBooks Desktop.

For more questions, while reconciling, just drop me a reply below. I'm always here to help. Have a good day ahead.

Credit card accounts that have both parent and subaccounts should have both the parent and the subaccounts reconciled. Setting the accounts up to mimic the bank's process of transferring the subaccount balances to the parent account can help increase efficiency and ease of reconciliations. 

Before you connect the bank feed, be sure the chart of accounts is set up correctly to reflect the credit card parent and subaccounts. You’ll want to have each individual card as a subaccount of the Parent Account:

• Parent (Corporate) Account
• subaccount for Card A
• subaccount for Card B
• subaccount for Card C

After you’ve confirmed the chart of accounts is set up correctly, you’ll need to connect the bank feed for each credit card subaccount to its respective bank account. Do not connect the bank feed for the main parent account to the bank account since doing so will result in duplicate entries.

The transactions will post to the bank feed for each subaccount. When the statement period comes to an end, the remaining open balances for each individual subaccount is then transferred to the main parent account, creating a consolidated account statement. 

To Reconcile:

1. Reconcile the transactions cleared from the account:
1. Select the subaccount you would like to begin with from the dropdown menu in the QBO reconciliation screen.
2. Enter < $0 > in the ending statement balance field.
3. Enter the statement ending date and select Continue.
4. Reconcile the account to the monthly statement by selecting the cleared transactions in the reconciliation screen. Continue until all transactions on the monthly statement have been selected in QuickBooks Online.
2. Transfer the remaining balance DIFFERENCE from the subaccount to the parent account (see below for details).
3. Complete the reconciliation by selecting the newly posted transfer and verifying the DIFFERENCE is $0.
4. Select Finish now to complete the subaccount reconciliation.
5. Complete the process for each subaccount until all subaccounts have been reconciled.

To post the transfer from the subaccount to the main (parent) account:

1. Note the remaining DIFFERENCE amount in the upper right corner of the reconciliation screen. This is the amount you’ll need to post to/from the parent account.
2. Determine how to transfer the difference:
1. If the difference is a positive amount, then an overpayment has been recorded on this subaccount. The transfer should be FROM the subaccount TO the parent account.
2. If the difference is a negative number, then there are outstanding charges that haven’t had payments posted against them during this cycle. The transfer will be FROM the parent account TO the subaccount.
3. Post the transfer accordingly.

To reconcile the main (parent) account

Once you’ve reconciled all the subaccount balances to $0, it’s time to reconcile the parent account.

1. Select the parent account from the dropdown menu in the QBO reconciliation screen.
2. Enter statement ending balance and date.
3. In the Reconciliation screen, select the transfers you created representing the subaccount balances, along with any payments made during the statement period to finalize your reconciliation.
4. Check that the DIFFERENCE is $0, then select Finish.

Hi Jen,

Thank you for a explanation that makes sense, I have been searching for a long time.

But if the main account is not linked to the bank then how do the balance come in?

Ralf