I've never been hard core on fixing my CC accounts within my books, but my new acct wants everything tip top.
I have 2 cards under one main cc account. When making payments to the main account, I write a check to cover the online bill payment to the main CC account. But on the balance sheet this comes in as main CC: other and a negative number. What am I doing wrong here?
CC main is fully reconciled and looks great, but the numbers don't look pretty once you do a balance sheet.
I'd like to share with you some information about reconciling credit card account and balance sheet.
The amounts or balance showing on your balance sheet depends on the transactions entered to a specific accounts. When creating transactions from the credit cards you'll need to select the correct Expense accounts or Items.
A negative balance in Credit Card means that you have deposited amounts greater than expenses.
If you can let me know more about this, I would love to help you further. You have a wonderful day ahead.
I appreciate the screenshot you've provided. Let me help you sort this out.
To better isolate this issue, you may want to check the transactions associated with the Chase CC 77 main - Other. Ensure that the account you used is not the main one, but one of the two sub-accounts.
I hope I understand what this question is asking. But if not, my answer should help anyone struggling with the initial setup of a credit card account in QB. BE SURE TO SELECT CREDIT CARD ACCOUNT when setting up these accounts. Do not select liability account. Credit card accounts are their own liability account in QuickBooks.
I am not an expert, but suspect many credit card accounts works like the ones I've dealt with. They have a main account number, which is the one that your payments will show up in on your statement. Each credit card under this main account will have their own account numbers (usually only differing from the main account with the last four digits - which are the last four digits on each credit card). You will receive separate pages in your statement for each individual credit card. This is more typical for business credit card accounts, than personal credit card accounts. Business credit cards separate charges by card number, so you can see what each person in your organization is spending.
So the correct way to set this up in QB in your Chart of Accounts is to create a PARENT CREDIT CARD ACCOUNT, with each card being a sub-account, but also the "payment" account being a sub account.
So my parent account is named "CC parent 1234".
Each card subaccount is named "CC CHARGES 5678", "CC CHARGES 0987", etc.
Then the payment account (which is the main account which receives payments) is named "CC PAYMENTS 1234". Note that the four digits of this match your parent account, because your parent account and payment account is the same thing. The parent account is created to simply give the credit card charges and payments a place to reside together.
You could eliminate digits from your CC PARENT account and just name it "CC PARENT ACCT", if you want. I add the digits, in case someone has multiple credit card accounts, possibly with different banks. So just name with what makes sense. You might want to name things with the bank name, if you have several. Such as "CC CHASE PARENT", "CC CITIBANK PARENT", etc. I also shorten names and words to keep my account names as short as possible, so viewing them in screens is easier. (Just a side-note.)
In Banking in QBO, you will see your payment acct and each credit card as separate icons. Check off (Add or Match) items in banking, as usual.
When you reconcile the credit card account in QBO, you will only reconcile the PARENT account. All charges and all payments from your subaccounts will be together in the parent account. You will not do any reconciling in the subaccounts.
I hope this helps some of you. It's hard to type things in a way that makes sense.