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C
CSMolly
January 5, 2020
Question

Categorizing Credit Card payments

  • January 5, 2020
  • 4 replies
  • 52 views

Hi there!

When choosing Business, Personal or Split, which is best to use in my situation. 

Typically when I use my credit card, I later pay it down in lump sums usually around $200-$500. How to do choose the right category without separating every transaction? This is on my person credit card as my business card is in the mail headed to me. Just trying to catch up on a lot of things!

Thanks!

4 replies

Kristine Mae
Kristine MaeModerator
Moderator
January 5, 2020

I'd like to help you with the credit card payments, CSMolly.

 

If your credit card account is connected to our system, you'll have to categorize the downloaded transactions to specific Schedule C categories. 

 

Then, if the checking or savings account used to pay the credit card is connected as well, use Transfer: Credit Card Payment as the category. This is to avoid duplicate expense transactions. 

 

Get back to this thread if you have additional questions. We're here to address them. 

H
hokeywolf
January 5, 2020

How to keep up with credit cards payments and how to use google sheets?

BigRedConsulting
BigRedConsulting
Level 15
January 5, 2020

When paying a credit card, simply pick the credit card account.  (It should be on your chart of accounts, similar to your bank account.)

 

The detailed categories are selected as you enter each transaction, not as you pay the bill.

 

If you also use the credit card for personal use (not a good idea) then for those transactions, use an Equity account so they don't appear on your P&L.

 

 

A
AliciaR2007
February 11, 2022

How do I enter in QuickBooks a payment to a credit card?

R
Rasa-LilaMQuickBooks Team
QuickBooks Team
February 11, 2022

Thanks for joining this thread, AliciaR2007.


Entering a credit card payment is a breeze. I’m here to help and guide you on how to do this in QuickBooks.


If you’re using QuickBooks Self-Employed (QBSE) and the account is connected to the bank feeds, classify the downloaded transaction to a specific Schedule C category.


When the bank account used to pay the credit card is linked to online banking, select Transfer: Credit Card Payment as the category type.


However, if you are currently subscribed to QuickBooks Online (QBO), there are multiple ways to keep track of your expenses and maintain accurate financial reports. Let me show you one of the methods on how to handle this in the online program:


To pay down a credit card:

 

  1. Tap the New menu in the upper right and choose Pay down credit card under Other.
  2. This will take you to a screen where you can input the payment.
  3. Click the drop-down for Which credit card did you pay? and pick the correct account.
  4. Input the payment amount as well as the date.
  5. Press Save and close.

 

For more in-depth information into the process, check the following article: Record your payments to credit cards. From there, you’ll learn the alternative way to pay for your credit card.


Additionally, the links below contain topics that will guide you on how to perform each expense and banking-related task in QBSE and QBO. These resources outline the steps to manage your money-out payments and other banking transactions.

 

 

Stay in touch if you need further assistance with managing your credit card payments and other entries. I’m always ready to help you. Have a great day ahead. 

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