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Level 1

When reconciling a credit card statement under cash basis accounting, how do I determine the ending balance for QBO?

Also, why can't I just use the dates on the credit card statement to balance the account?
3 Comments
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Moderator

When reconciling a credit card statement under cash basis accounting, how do I determine the ending balance for QBO?

It's great to see you here, @bkelley16,

 

QuickBooks Online treats Credit Card Account transactions as cash transactions for cash-basis statements. The reconciliation process is very similar to the bank reconciliation.

 

Matching credit card transactions involves making sure that everything that appears on your credit card statement has been recorded in QuickBooks.

 

These steps will guide you to reconcile a credit card in QuickBooks Online:

  1. From the Gear icon, select Reconcile
  2. Find the credit card account from the dropdown list, then enter the ending balance and ending statement date from your credit card statement.
  3. Match all transactions that appear on the credit card statement to QuickBooks.
  4. Make sure your difference is zero before clicking the Finish button.
  5. Review and save reconciliation reports.

The Statement ending balance in QBO is the amount that you entered from your credit card statement into the program. 

 

Check out these links to learn more about this:

 

How credit card accounts are treated for cash-basis statements?

Common Accounting Errors with Credit Cards in QuickBooks.

 

If you have any other questions in mind, please reach out to me by adding a new comment below. I'll be right here to help. Have a nice day!

Highlighted
Level 1

When reconciling a credit card statement under cash basis accounting, how do I determine the ending balance for QBO?

Thank you for the response.  I understand how to use the reconcile account using the statement balance.  However, it was told by the person who helped set up the company that by operating on a cash basis required us to balance the account by calendar month versus using the bank statement information.  Is this true or am I good to go using the statement information which is less work? 

 

I couldn't understand this since the transaction date determines the year/period that the credit/debit is realized by the company.  

 

Thank you again in advance for your help. 

Highlighted
Moderator

When reconciling a credit card statement under cash basis accounting, how do I determine the ending balance for QBO?

It's good to have you back, bkelley16.

 

Let me provide additional information about reconciling an account in QuickBooks Online. When reconciling your credit card account, we recommend following your bank statement information simply because that will serve as your basis in acquiring your Ending balance

 

On the other hand, you can use reports to show cash basis transactions. You can also run a quick report for your credit card account. Here's how:

  1. From the Accounting tab, select Chart of Accounts.
  2. Locate your Credit Card account.
  3. In the Action column, click the drop-down arrow.
  4. Select Run report.

I'm adding this article about troubleshooting reconciliation discrepancies in QBO: Fix issues when you're reconciling accounts in QuickBooks Online.

 

I'll be right here if you have any other concerns with reconciliation in QBO.

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