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christinebuilder
Level 1

One credit card with multiple QB accounts

We have 3 sets of books but use one credit card Statement.  Charges from the card can be entered into any of the accounts, depending on the use.  Attempting to reconcile these every month is a nightmare.  I have to verify transactions against 3 accounts.  I wish I could do a normal bank reconciliation every month. 

 

I've also taken over from a different bookeeper who was kind of winging it for the past year.  So not all the transactions are matching perfectly, but somehow she reconciled the bank accounts, which I find fascinating.  I have no way of knowing if my end totals are correct or if we are missing info, without redoing all the rec's for the past year. 

 

Anyone have a better way to try and reconcile the credit cards in a better way.?

7 Comments 7
Pete_Mc
Community Champion

One credit card with multiple QB accounts

So, if I'm correct...   You have three companies, but someone uses either their personal card or the credit card from one of the companies to purchase items for the other companies as well?

 

The credit card should only be entered into and reconciled in the company that's writing the check to pay the bill.  The other two companies, track all expenses as coming from that card and then should show a payment, credit memo, etc. to show reimbursement to the company that is paying the credit card bill. 

 

I'm also going to guess this may be a personal card the principal is using for their business.  So if they're not already doing it, I'd suggest that this card should only used for business purposes.  Use a different card for any personal purchases.    

 

And after saying the above....   What does your Accountant say?

Rustler
Level 15

One credit card with multiple QB accounts

In addition to what Pete said, I would suggest the owner, dedicate one credit card per business, you can do that with personal CC if you want.  That solves the whole problem, and it keeps the separation of business activities intact as it should be.

kellysakelakos
Level 2

One credit card with multiple QB accounts

The guys are right in the easier way would be to have a card account for each business, but you already know that.  And knowing how bosses can be, he doesn't want to change it. So, what I would do is TURN OFF the bank feed if you're using one for the credit card, and just download the transactions for the month the Excel.  Then you can just go down the spreadsheet marking them by company and expense account.  Then you can sort it to your hearts content, in any manner you need.  You can make multiple sheets with the first one being the "master" with the whole statement, and each sheet after that being for each company.  Or what ever suits your need.

GOTTA LOVE EXCEL.

Hope this helps.    ~ Kelly Sakelakos

Pete_Mc
Community Champion

One credit card with multiple QB accounts

Excel is a great tool and it is an option for sorting the expenses for @christinebuilder.  But I wouldn't recommend turning off Bank Feed or if she's not using it, still manually entering in all the credit card purchased it the QBs file for the company that pays the credit card. 

 

You still need to account for those purchases that the one company is writing the check to pay for.  Some of the charges will be entered as legitimate expenses to the company that pays the card, but the other expenses still need to listed to show the expense and then show the reimbursement.  And you certainly don't want to get into a situation where you show money coming in from company 2 & 3 but can't apply it as a reimbursement to the CC charges.  Then company 1 is showing income from 2 & 3.

kellysakelakos
Level 2

One credit card with multiple QB accounts

But she would get all of the other transactions included in the download to Excel, wouldn't she?  She would need to mark off on the sheet all that has already been posted, and manually post the others.  A combination of the Feed and the Excel download may be necessary if she has many many cc transactions each month.  But would have to be careful not to end up with items posted twice. And it leaves her original problem of everything being fed into the one cc account in her QB and she has to redirect each one of the items to it's proper company books.  Now, you're talking about dealing with Transfer/Clearing account entries between the 3 companies, and more reconciling. If she doesn't use the feed, she can simply sort and summarize the Excel sheets and post one single journal entry to each company to get the statement posted.  Then the companies can issue payments individually.  3 checks in one envelope.  ~ Kelly Sakelakos

Pete_Mc
Community Champion

One credit card with multiple QB accounts

I guess to each there own....

 

But I would never want to pay one companies credit card with multiple checks.  Just opens a HUGE can of worms if something gets messed up and you're going back to see what payment was messed up.

 

To me it makes MUCH more sense to reconcile and pay the credit card from one QBs company.  Which I believe is the way it is currently being done. 

 

I also still think it would be cleaner and simpler for all the companies for Company A to create one invoice a month for each of the other companies with a one line entry for their charges.  This would be an Expense Reimbursement entry to Company A (since they didn't really incur any expense) and an invoice to pay and show for the expenses to the other two companies.

 

The other two companies would each have an liability account (e.g. "Company A" Credit Card Charges) that they can choose to either itemize entries to or enter a single bulk number per month and apply those items to the appropriate Expense account(s).  They then write a check to Company A against the liability account in their books and all is good. 

 

And yes, I did mean an Other Current Liability account, not a Credit Card account, because the other companies do not have a credit card.

 

 

 

 

kellysakelakos
Level 2

One credit card with multiple QB accounts

Hi Pete!

 

I understand what you're saying. We want to avoid added steps such as posting to clearing accounts and inter-company transfers.  I do agree with you that Company A issuing invoices would work well too. Definitely want to use A/P.  A payment is a payment.  Can pay it to the credit card, or to Company A, either one. So we're saying pretty much the same thing.

 

~ Kelly Sakelakos

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