Monday, October 20, 2014

Credit Card Setup and Use in QB

Set up the Credit Card by going to
1. List>Chart of Accounts>right click on any item and choose new>you can also set up sub accounts if needed.  Sub Accounts are used when there is 1 main account and numerous card holders.
2. Choose Credit Card for the Type of account and enter the information
3. To enter the credit card charges go to Banking>Enter Credit Card Charges and enter all of the information needed.  Choose the proper account such as office supplies, etc.
4. If you are paying a bill that you entered go to Pay Bills and at the bottom there is a drop down box for "Method">
5. Choose credit card and the proper credit card from the list. If you don't need to enter a bill you can enter charges directly by going to Banking>Enter credit card charges.

To set up for online services make sure you have online service with your credit card company
Add the online service(s) to your QuickBooks account: Go to the Banking menu and click Online Banking, and then click Set Up Account for Online Services.

Follow the instructions in the wizard. Click Next when you complete the step(s) on each wizard page.



To reconcile:
Go to Banking>Reconcile, choose your credit card account and reconcile. If you have sub accounts you will reconcile the main account.
When the reconciliation is complete you will be given the option of writing a check or saving the check to print later or entering a bill.  (I cancel out of these screens as I prefer the credit card balance be listed on the balance sheet, not lumped into Accounts Payable).
You can change the amount to pay as QB automatically enters the full amount due. If you enter a bill then the bill will be listed in the Vendor account and post to the credit card account to reduce the credit card balance.
You can also cancel and enter a check directly at a later date. (The method I prefer)
If you choose this method when you write the check, in the Account drop down, choose the Credit Card Account.

It is a matter of whether you want your credit card register to reflect the liability for the credit card or if you want it to be part of your accounts payable.

To Download:
You must have online access to the card and the Credit Card Company must allow QB downloads.
Then go to Banking>Use Register>choose the credit card account and click the download option in the upper right and follow the prompts.


ALWAYS make sure you have a good backup prior to making any changes.

No comments:

Post a Comment