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KLPABE
Level 1

QB Self Employed: How to categorize a paid credit card bill

Hello,

I'm a pretty new user, and I have a question about how to categorize my paid credit card bill.

  • I have both my business checking and my business credit card connected in my accounts, i.e., all my transactions automatically sync into QB.
  • I'm clear on categorizing the expenses that come through on my credit card.
  • Where I get confused is in how to categorize the payment of my credit card bill that I pay from my business checking account. If I call it a "credit card payment", it shows up as green, which (I think) means that QB sees it as someone who has paid for something I've provided to them. Correct?
  • So, do I categorize that payment from my checking to my credit card as a "Transfer"?
  • All the other Community topics in this area seem to relate to regular QB, not my Self Employed version, and I've learned these are very different products...

Thanks in advance!

7 Comments 7
maxyness
Level 3

QB Self Employed: How to categorize a paid credit card bill

Can you not just write a check?

Pete_Mc
Community Champion

QB Self Employed: How to categorize a paid credit card bill

If you are making an Online/Electronic Payment, then yes, you use the Transfer function in QBO.

 

If you were actually writing a check and mailing it in, then you'd enter it in with the check number, etc.

 

PM305
Level 1

QB Self Employed: How to categorize a paid credit card bill

It looks like they said just leave as transfer. What about if you split between business expenses and personal? Your credit payment will be deducted on your % basis but your transfer would be just business or personal?

Candice C
QuickBooks Team

QB Self Employed: How to categorize a paid credit card bill

Good Morning, @PM302. 

 

It's great to see you back in the Community. With the information provided, I recommend consulting with your accountant to be sure on how to categorize the transfer. If you don't have an accountant, check out this link to find one near you. 

 

Here are a few articles that can give some additional information that can help your business in the future: 

 

 

If you have any other concerns, feel free to ask. Wishing you and your business continued success! 

Pete_Mc
Community Champion

QB Self Employed: How to categorize a paid credit card bill

As Candice C mentioned, you should check with your Accountant as to what is a Personal expense, what is a Business expense and how to Categorize them.

 

Now whatever your Accountant tells you, you'll simply categorize each transaction in your Credit Card Acct.  Those entries will be reported in QBs the way your Accountant wants them. 

 

The payment for the credit card is simply just the payment for the credit card.  Nothing more, nothing less and does not affect what was a reported in the Credit Card Acct as Personal or Business.

StroobyDoo
Level 1

QB Self Employed: How to categorize a paid credit card bill

Can you not offer a solution from the 20th century?

Anonymous
Not applicable

QB Self Employed: How to categorize a paid credit card bill

Seriously, these are not effective answers.

 

The question is: within the app, when we pay a credit card bill, it's considered "income" and needs to be categorized as persona, business, or split. What does QB suggest we do BESIDES checking with an accountant or writing a check. This is an app issue, not an accounting issue.

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