How to record credit card payments in quickbooks online?

Introduction

Recording credit card payments in QuickBooks Online is an essential task for businesses to accurately track their financial transactions. In this article, we will explore the step-by-step process of recording credit card payments in QuickBooks Online, ensuring that your books are up to date and accurate.

Step 1: Set up credit card accounts

Before you can record credit card payments, you need to set up credit card accounts in QuickBooks Online. To do this, follow these steps:

1. Log in to your QuickBooks Online account.
2. Go to the “Chart of Accounts” by selecting “Accounting” from the left-hand menu.
3. Click on the “New” button.
4. Select “Credit Card” as the account type.
5. Fill in the necessary details such as the account name, description, and opening balance.
6. Click on “Save and Close” to create the credit card account.

Step 2: Record credit card charges

Once you have set up your credit card accounts, you can start recording credit card charges. Here’s how:

1. From the left-hand menu, select “Banking” and then “Banking” again.
2. Click on the “Add transactions” button.
3. Choose the credit card account you want to record the charge for.
4. Enter the necessary details such as the date, payee, and amount.
5. Categorize the expense by selecting the appropriate account from the drop-down menu.
6. If needed, add any additional details or attachments.
7. Click on “Save” to record the credit card charge.

Step 3: Record credit card payments

Now that you have recorded the credit card charges, it’s time to record the credit card payments. Follow these steps:

1. From the left-hand menu, select “Banking” and then “Banking” again.
2. Click on the “Add transactions” button.
3. Choose the credit card account you want to record the payment for.
4. Enter the necessary details such as the date, payee, and amount.
5. Categorize the payment as a transfer from your bank account to the credit card account.
6. Select the bank account from which the payment was made.
7. Click on “Save” to record the credit card payment.

Step 4: Reconcile credit card accounts

To ensure the accuracy of your records, it’s important to reconcile your credit card accounts in QuickBooks Online. Here’s how:

1. From the left-hand menu, select “Accounting” and then “Reconcile.”
2. Choose the credit card account you want to reconcile.
3. Enter the statement date and ending balance from your credit card statement.
4. Match the transactions in QuickBooks Online with the transactions on your credit card statement.
5. Mark the matched transactions as cleared.
6. If there are any discrepancies, investigate and resolve them.
7. Once all transactions are reconciled, click on “Finish now” to complete the reconciliation process.

Conclusion

Recording credit card payments in QuickBooks Online is a straightforward process that involves setting up credit card accounts, recording credit card charges, recording credit card payments, and reconciling credit card accounts. By following these steps, you can ensure that your financial records are accurate and up to date.

References

– Intuit QuickBooks Online: https://quickbooks.intuit.com/online/
– QuickBooks Community: https://quickbooks.intuit.com/learn-support/en-us/get-started-in-quickbooks-online/how-do-i-record-a-credit-card-payment/00/186541