Record credit card payments in QuickBooks Online & Desktop

You can also delete a transaction if you enter it in error. Regardless of whether you use the first or the second method to enter your credit card charges, once entered you can now match the transaction from the Banking screen. Once you discover bank feeds, reconciling becomes nearly seamless, and you’ll spend much less time manually entering transactions. Entering credit card charges into QuickBooks Online is a quick and easy process. Here is a step-by-step guide on how to manually enter credit card charges in QuickBooks Online.

We will replicate this exact process for the $1,019 payment as well and categorize it as Business Checking 2345. When I look in my register for Business Checking 2345, I can see my payments for $827 and $1,019. The problem is sometimes these payments get doubled up and I want to show you how that happens. Let’s head over to our banking tiles where we were before. We’ll be able to see that $827 payment to the Bank of America Credit Card. We will see again that this payment is incorrectly categorized as “Uncategorized Expense.” We know that isn’t true.

If we go over to our Business Checking 2345 account, we will see in that register they are duplicated as well. Automating credit card activity can be very beneficial, but it also comes with its own set of challenges. You and your team still need to periodically review QuickBooks to make sure it’s working correctly, not just set and forget it. I’m quite excited about this feature, it makes it so much easier to record a credit card payment without doubling it up. That was something that I used to see really often, it was a very common error. Today we’re going to look at the new pay down credit card feature.

Option 2: Use your bank feed to enter transactions.

There are various methods for recording credit card payments in QuickBooks Desktop, we’ll teach you how to record credit card payments in QuickBooks Desktop in some of the easiest ways. Whether you have been using QuickBooks for a while or you are brand-new to the accounting software platform, we recommend starting at the beginning to ensure that all credit cards are properly set up. This includes ensuring that you have entered the correct starting balance (or opening balance) for each credit card added to QuickBooks. Also, as the number of users that are responsible for managing credit card activity in your company increases, this can further complicate the situation. Assumptions about someone else entering credit card transactions or reconciling accounts can quickly lead to inaccuracies. Reconciling your bank and credit cards regularly will ensure that your records are accurate, and you have categorized your credit card payments in QuickBooks Online correctly.

QuickBooks will then track your expenses (and payments) as they occur and your books will be perfectly synced with your credit cards. With the effective use of rules, this program will recognize the categories into which each expense falls based on where the purchase was made. For example, it will recognize US Postal Service as an item to be categorized under Shipping Expenses. To record the payment processing fee, enter the account information, description, and amount charged under the “Add Funds to This Deposit” section.

Step 8: Add Additional Information

To use the service, you have to open both the software QuickBooks and Dancing Numbers on your system. To import the data, you have to update the Dancing Numbers file and then map the fields and import it. Dancing Numbers helps small businesses, entrepreneurs, and CPAs to do smart transferring of data to need to craft a sales strategy and from QuickBooks Online. Utilize import, export, and delete services of Dancing Numbers software. Use the “Finance Charge” box to enter any finance fees (or interest fees). Enter the date the finance fee was charged and select an account like “Interest Expense” to categorize your finance charge.

• They may not seem essential or beneficial to your business, but accurate cash flow statements are crucial to keeping track of your business’s operations.
• The Detail Type (b) will automatically update, and the name field (c) will default to “Credit Card.” Change the name of the credit card to the account name and the last four digits of the card number.
• And we’ve recorded our credit card payment without here now our balance is zero, having to do any transfer funds, without  messing it up.
• These ways are mentioned here so that you can follow the way you want to.
• The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication.

But I digress, and that is a topic for another blog post. The first thing I will show you now is how things get put into the register incorrectly. Let’s have a look at our payment in the Bank of America Credit Card that was received for $827. We will tell it where it came from by clicking the add radio button and entering Business Checking 2345 account for category and then clicking the green add button in the bottom right.

Reconcile

Once you’re done with the transfer of the transaction, you need to match it with the new account. Bringing clarity and confidence to million dollar businesses through accounting and advising. Luckily for us, the cloud accounting age has brought numerous options for automating the tedious, painstaking tasks that come along with revenue recognition. As an alternative to the Chart of Accounts window, you can click the Enter Credit Card Charges icon in the Banking area of the home screen. Click the Account button in the bottom-left corner of the Chart of Accounts window and then choose New from the drop-down menu. If you’ve never dined at this fine establishment before, choose Add New; then add the business name.

Depending on the settings you selected in how to set up advanced settings, you may not have all the fields displayed. Our free QuickBooks tutorial series, which includes this lesson, is designed to help you get up to speed with QuickBooks Online, our best small business accounting software. To maximize your learning experience, we recommend that you follow along in your QuickBooks account.

How to enter credit card charges into QuickBooks Pro

This will open to allow you to edit any fields in the register. However, not all fields that are available when inputting transactions appear in the register. To edit fields that aren’t shown, click the Edit button immediately below the transaction to get to the original expense input screen. The credit card register will provide a list of all transactions in your credit card account.

When you make a payment using your debit card, your checking account is reduced by the amount of the purchase. Complete the rest of the transaction, entering the category to post it to, a description if necessary and the amount of the transaction. You can split the transaction between categories (accounts in your chart of accounts) by entering multiple lines.

If you have previously uploaded attachments into QuickBooks Online, you can click the “Show Existing” link to open a right sidebar and add that attachment to the expense. Cindy McGuckin is an IT trainer with over 20 years of experience. Her no-nonsense approach to teaching complicated topics makes her classes engaging and interesting. Gentle Frog is an independent bookkeeping company, we are not affiliated with Intuit QuickBooks or any bank.

Recording the balances allows you to capture the expenses at the end of your organization’s fiscal year or calendar year. To get started, you will need a copy of your credit card statement to complete the below steps. Mark Calatrava is an accounting expert for Fit Small Business. When you’re finished entering the transaction details, click on the green Save and close button in the bottom right corner of the screen. Enter the remaining transaction details on the expense input screen.

To use the travel example, if you travel frequently, use memos to enter where you went and the business purpose of the trip. This allows you to easily see these details later rather than referring back to the source document. These are a few common QB mistakes when it comes to credit cards . In an accounting system like QuickBooks Online, a simple invoice consists of a debit to Accounts Receivable (A/R) and a credit to a Sales account. This indicates that a sale has been made and that money is owed to your business.

It is left for you choose how you want to apply the credit and below are some ways you can do that in QuickBooks. If you need help reconciling, setting up a new credit card or one that was never entered properly into QuickBooks drop us a line. Recording the accrued unused paid time off balances as accrued expenses in QuickBooks Online can be done in six simple steps in QuickBooks Online.