Credit card opening balance doesn't apply to business

dpic44 · ‎January 22, 2019

If a personal credit card is now being used solely as a business credit card and there is an opening balance that does not apply to the business how can it be recorded to facilitate a reconciliation?

Thank you in advance for your help!

qbteachmt · ‎January 22, 2019

@AldrinS

Please learn from this input. There is no JE for this. You already have the proper tools = Banking menu > Enter Credit Card Charge. You avoid JE when you already have the Proper tools.

@dpic44

On this entry for your transition into QB, your first entry for the card where you already owe would be Enter Credit Card charge. On the Expenses tab, enter Equity, such as Prior Equity is Owner Equity or Retained Earnings or Shareholder Equity. Or, just pay it off personally and don't put that entry into the business at all.

View solution in original post

AldrinS · ‎January 22, 2019

Help has arrived, dpic44.

I'm by no means an accounting professional, but I do have some insight and resources to provide that can help get you on the right track.

You could make a journal entry to edit the opening balance of your credit card account. With this, you'll be able to remove the balance that doesn't apply to it anymore, so you can facilitate a reconciliation. The steps below will guide you through the process:

To make a journal entry in QuickBooks Desktop

From the Company menu, choose Make General Journal Entries.
On the first line, credit the Credit Card account with the amount that doesn't apply to the business.
On the second line, debit the offset account with the same amount.
Click Save & Close.

Just a heads up, this method can impact your books and you may wish to seek additional guidance from an accounting professional. Every business is unique and they can make suggestions on how to handle this. If you're not affiliated with one, our Intuit Find-A-ProAdvisor site can help you to find certified professionals in your area.

Don't hesitate to reach out to me here in the Community with any additional questions or concerns you may have. Thanks for dropping in, wishing you and your business only the best.

qbteachmt · ‎January 22, 2019

@AldrinS

Please learn from this input. There is no JE for this. You already have the proper tools = Banking menu > Enter Credit Card Charge. You avoid JE when you already have the Proper tools.

@dpic44

On this entry for your transition into QB, your first entry for the card where you already owe would be Enter Credit Card charge. On the Expenses tab, enter Equity, such as Prior Equity is Owner Equity or Retained Earnings or Shareholder Equity. Or, just pay it off personally and don't put that entry into the business at all.

dpic44 · ‎January 22, 2019

Hi AldrinS!

Thanks for the quick reply. I'll look over your suggestion.

I had a thought after posting my question. Since the prior balance is personal and he has given the company loans I thought that the opening balance can offset the loan. What are your thoughts?

Thanks again!

dpic44 · ‎January 22, 2019

Hi qbteachmt!

Thank you! In a perfect world paying that off prior to putting it in QB is the right solution. Unfortunately that did not happen. Did you see my second question? Since the prior balance is personal and he has given the company loans I thought that the opening balance can offset the loan. What are your thoughts?

Topics

Training

Community

Resources

Credit card opening balance doesn't apply to business