How to Process Credit Card Payments in QuickBooks Online

Recording credit card payments in QuickBooks Online ensures that your outstanding balances are accurately tracked and reconciled. Splitting payments among multiple credit card accounts is possible, providing flexibility for various payment scenarios. Save your changes to complete the recording of the credit card payment.

  • And once that's done , can I just delete those transactions where she entered the payments as Credit Card Refund/Credit showing the business checking account?
  • From setting up your credit card account to reconciling your statements, each step plays a crucial role in maintaining accurate financial records for your business or personal finances.
  • You can ignore those personal expenses since the purpose of adding it is to track business expenses.
  • If you opt to pay the bill by writing a check, you go straight to the Write Checks window, and the Expenses tab is all filled out for you.

In fact, this is essentially a shorter version of the Expense screen shown in the first method for entering credit card charges we covered. When reconciling the credit card statement, I select "enter a bill for payment later" - this moves the amortization of financing costs - basic principle of amortization credit card bill amount into Accounts Payable. This causes a problem though if a balance rolls over, and if I pay more than the previous balance during the billing period I need to enter a credit card credit to move that into AP as well.

Customer or supplier balances in Accounts Payable and Accounts Receivable

If not, change it from Checking to the Loan account already set up to track payable to the personal account. Allow me to add to this discussion and provide some clarification about paying business credit card from a personal account. 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. For this example, let's split the $150.00 transaction evenly between Advertising and Office Expenses.

If the card was in use before the date you started using it for business, consult with your accountant before proceeding to ensure your balance sheet remains accurate. After you’ve entered your beginning balance, click Save and Close. If you haven’t previously entered data for credit card transactions in QuickBooks Online, you can add transactions on the fly from the bank feed. When you make a purchase, you’ll want to enter a bill then use the Pay bill feature to mark the items paid. Then match it to the credit card transaction under bank feeds.

If you have pending transactions for your real-life bank or credit card accounts, don't worry. Once you have your bank statement and the pending transactions clear the bank, come back and adjust your opening balance entry. When you create a new account in QuickBooks Desktop, pick a day to start tracking all of your transactions.

  • By following these steps, you can effectively track your credit card expenses, monitor your cash flow, and ensure the accuracy of your financial records.
  • So she got the credit card to reconcile, but checking account is still showing them as uncleared.
  • Remember that managing your credit card accounts efficiently is essential for maintaining a healthy and thriving business.
  • You can also change your mind about the payment options or add them, in case you forgot when you created the invoice.
  • If you have any further questions or need additional assistance, don’t hesitate to reach out to QuickBooks Online support or consult with a financial professional.

Even though they are classified as credit cards, they are still liabilities. First, set a preference to make sure your customers will view the invoice via the Online Invoice portal. To do this, click that gear icon, go to Account and Settings and then choose the Sales tab.

Credit card transactions vs. debit card transactions

Carefully review transactions and reconcile them against statements to maintain financial integrity. It’s worth noting that you should record credit card payments as soon as they are made to keep your records accurate and up to date. This will also help you reconcile your credit card balances with your bank statements more efficiently. Connecting your credit card account to QuickBooks Online not only saves you time but also improves the accuracy of your financial records. With automated transaction imports, you can easily reconcile your credit card transactions and ensure that your books are up to date. We’ll also cover how to review your credit card transactions in the credit card register and how to modify transactions if needed.

The Community is available around the clock to provide support and guidance. Earlier, I told that you that once the invoice is sent, if you’re using QuickBooks Credit Card Payments, your job is done. QuickBooks Online does all the rest of the work for you.

Enter credit card charges

Click the Pay all or a portion of the bill now" to record the credit card payment. Paying down a credit card bill in QuickBooks Online is one of the challenges I see many users struggle to accomplish. The process becomes messier when partial payments are made on the credit card and you have multiple sub-card holders. 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.

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QuickBooks Online will automatically track and categorize these transactions, making it easier for you to manage your finances. It’s recommended to reconcile your credit card transactions regularly, preferably on a monthly basis. This ensures that your credit card balances are accurate and up to date, allowing you to monitor your expenses and identify any fraudulent activities or discrepancies promptly. There are several uncleared payments to a credit card sitting in the uncleared items report.

Entering your credit card purchases into QuickBooks Online and then matching that transaction to the bank feed is the best method, at least from a bookkeeping standpoint. There are three primary ways to enter credit card charges in QuickBooks Online. Enter credit card charges to put the amount you owe in the credit card account (Other Current Liability). Use the Pay down credit card option under + New to record credit card payment. I'm afraid if I enter the information wrong it will screw up my bank account information.

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If this expense is billable to a customer, click the Billable checkbox (d) and enter the name of the customer to be billed (e). From the expanded view, choose the radio button next to the correct transaction, then click Match. Our partners cannot pay us to guarantee favorable reviews of their products or services. Pay your credit card charges to reduce the amount you owe.

If you don’t want to use the expense entry method or the bank feed/import method, you can enter credit card charges directly into the credit card register. Yes, you're correct with recording the bill and using Pay Bills to pay the credit card purchase. Also, entering a credit card credit will be your best option when you move it into an AP if you pay more than the previous balance during the billing period. This will lead you to reconcile the account correctly. You can select the enter a bill for payment later in your case when you signify a payment against your CC account. If the credit card and the bank account you use to pay the credit card expense are connected (bank feeds), you can record the payment by transferring the record.

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