I have recorded and posted all items on the cc statement as expenses to what they were for, however I have also always entered the credit card payment as an expense as well. I got to thinking about it and wanted to be sure I was doing this correctly. If I already entered all items on the statement it seems that entering the cc pmt would be accounting for the expenses twice.
A credit card payment should be recorded as a check using the credit card balance sheet account. It's basically a transfer of cash from checking to the CC account, similar to a transfer of cash between two bank accounts.
Exactly what BRC said. Card charges are expense when card is used, even in cash basis accounting. You are borrowing as micro-loans from the cc company. This creates a loan type liability and when you pay the card company all you are doing is paying down loan balance.
If you reconcile the cc account before creating a payment check you will be prompted with an option to create a check at that point, and it can even be to print later. Or you create a check whose detail is the cc account in your COA.
So should the credit card payment be classified as Personal or Business on QuickBooks? All transactions on the credit card were already reported, I’m asking because I have both accounts, checking and credit card, linked to my quickbooks account. Or should the payment be marked as personal since the transaction were already recorded individually?
I have my checking account and credit card issued by the same bank. I use the CC to purchase materials and other items needed to run my bussiness. I record them as expenses. When I pay off the CC I just transfer funds from my cheching account to the credit card. I am a novice at QB, please bare with me. I sync my accounts to QB. When I identify a payment in the Bank account and match the corresponding transaction in the QB check in registar it is sometimes split to Principle and Interest but the interest portion is not recorded any where. Other times it shows as a payment in both places but when I go to the actual CC account whitch I also sync to QB the Principle portion is recored and the interest is not. What is the proper way to resolve this as the way I do it is confusing and not consistant