How do you reconcile a business credit card account when you paid it with a personal credit card

Hello there, mmk2222. Glad to have you in the Community space.

Reconciling a business credit card account with a personal account is possible in QuickBooks. We'll base your bank statement when doing the process. However, we'll need help from your accountant to review the journal entries you've created. 

Also, feel free to check these resources to help you reconcile the account in your company file:

• How to Reconcile an Account in QuickBooks Desktop.
• How to reconcile your bank accounts.

If you have follow-up questions in regards to this, please let me know by commenting below. Also, you can always post any questions related to QuickBooks. Take care always.

Thanks!  Yes I am happy to share the JE and I am the accountant. I think I already told you the JE, actually.

The article did not help me.  Is there someone you can refer me to?

Thanks again!

Also I am using QBs Desktop not QBs Online.

Thanks!

I'll continue to help you with your concern about reconciliation, mmk2222.

Before we start, I'd like to clarify that the principles in the article that Sarah shared will not apply to your situation since you used the business credit card on your purchases. Meaning the expenses are directly posted to your credit card register and accumulate a balance on your CC account.

What you only need to do is record the credit card bill payment out of your personal funds. This will zero out the credit card balance and will let you reconcile your credit card account. To do this, your JE will have:

• a debit to the Credit Card account
• a credit to the Owner's Equity account

On the other hand, when you reimburse yourself, you can write a check transaction against your Checking (business) account. Then, use the Owner's Equity account as a category to offset the balance in that account.

That will do it. If you have more questions, feel free to go back to this thread.

Thank you, Jess!  This makes more sense.  I deleted my original JE of debiting the expense account for the cc expense and credit Owner's Equity Contribution and made the one you suggested however it's still showing an outstanding balance and stating when I reconcile that I need to pay the Credit Card bill.

Not sure why this isn't working?  It's very frustrating.   DO YOU WANT ME TO SEND A SCREEN SHOT OF MY JE? 

Also, do I need to write myself a check?  Can I use the original JE as a contribution instead of writing a check to myself?

Thanks for getting back to us here, @mmk2222.

I have some information about reconciling your credit card accounts. Aside from creating a journal entry, you'll have to record the credit card bill paid through your business account. Thay way, it won't show as outstanding balance.

Before you pay a credit card bill, first reconcile the credit card statement against the credit card transactions you've entered in QuickBooks. After reconciling, QuickBooks will guide you to pay the credit card bill. You can pay all, part, or none of the bills at this point. You can refer to this article for details: Reconcile an account in QuickBooks Desktop.

I've also found a similar post answered by one of our allstar @Rustler, you might want to check for additional reference. Here's the link: https://quickbooks.intuit.com/learn-support/en-us/other-questions/paying-credit-card-with-business-a....

I've added this link if you need help with other QBDT tasks. Just look for responses that suit your concern.

Please know that I'm always here if you still have questions or concerns about reconciliation. Drop a comment anytime and I'll be happy to answer them for you. Take care and stay safe.

Thanks! I didn't pay the credit card bill out of the biz. Account. It was paid out of my personal account. That's part of the difficulty here.  

The issue is still not resolved.

I got you, @mmk2222.

I have more steps we can try. Create a credit card credit using the equity account. After that, check the transaction journal of the accounts used in the credit card credit if they're the same as the accounts in your journal entry.

If they don't match, create a credit card credit using your personal credit card account. With this, you're able to reconcile your credit card account. I'd also recommend consulting with a tax professional to make sure everything is recorded accordingly.

Click this link to go to our general QBDT topics with articles to guide you along the way.

Please know that you're always welcome to come back to this thread if you still have questions. I'm more than happy to help.

Thanks!  I am not understanding what you mean by "Create a credit card credit using the equity account. After that, check the transaction journal of the accounts used in the credit card credit if they're the same as the accounts in your journal entry." 

Please advise.  I really do appreciate your input.

Thank you for reaching out to us, @mmk2222.

I'll be glad to help you with your credit card concerns.

What my colleague ShiellaGraceA is trying to say is that you Create a Credit Card Credit and select credit card at the top then Equity account at the Line category item.

You can also check on how to Reconcile an account in QuickBooks Desktop to help you reconcile the account in your company file.

If you have follow-up questions in regards to this, please let me know we're always here in the Community to help if you have other questions related to QuickBooks. Stay safe!

Thanks!  Do you mean create a "credit memo"? or a JE?

I am sorry but this is new territory for me...

Thanks for getting back to us, mmk2222.

I'll be glad to explain further what my colleague wants you to do with reconciliation.

You'll need to create credit card credit and select credit card at the top line then Equity account at the next  Line category item in your journal entry to reconcile your credit card account.

You can also check this article on how to fix issues when you're reconciling in QuickBooks Desktop.

Don't hesitate to comment if you need clarifications. Have a great day!

Mmk2222,

It seems to me that in trying to help you, the responses have been overcomplicated.  I understand what you're saying here, and here is what I would do.

1. Create a cash bank account, or you your existing one if you have it.

2. Create a deposit into the cash bank account for the amount of the transaction and code it to owners equity. 

3. Write a check or transfer the transaction amount from the cash bank account to the Biz Credit Card.

Now when you reconcile, the payment will show.

I do this all the time and it's simple and easy to follow.