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Friday, July 26, 2013

How to enter credit card charges into Quickbooks

User friendly categories make bookkeeping in Quickbooks easier
Make entries in a Quickbooks credit card account 
Let's face it, credit card transactions are an integral part of just about any business. Whether you are receiving or spending funds, chances are you'll use a credit card at some point or another. 

Thankfully, Quickbooks is designed to make credit card accounting a quick and easy process. If your business recently received a payment through a credit card, or if you intend on paying for an expense using a credit card, you'll want to update your Quickbooks account with this transaction; otherwise, your entire balance could be thrown off. 

To learn more about how to enter credit card charges into Quickbooks, keep reading.

Set up a credit card account

First and foremost, you'll need to set up a credit card account. From the Quickbooks home screen, click “Chart of Accounts” followed by “New.” This will open up a new screen where you can add credit card accounts. Go ahead and follow the built-in Wizard tool that guides you through the process. You'll need to choose the type of credit card, name on the card, account number, expiration date, etc. Once you are finished, click “Done” and the credit card will then be added to your account.

Entering charges

After setting up your credit card account on Quickbooks, you will then need to go back and enter the actual charge amount. Go to the “Banking” menu under your account and select “Enter Credit Card Charges.” A new window will appear with a dropdown box showing all of your credit card accounts. Assuming you followed the previous instructions on adding your account, you should now see the respective credit card listed here. Double check to make sure it's the appropriate credit card account before clicking on it and proceeding to the next step.

Next, you'll need to select the vendor where your business credit card was used. Hopefully, the vendor is already listed in your Quickbooks account. If they aren't listed, you'll need to go back and add them before entering the credit card charge. Adding a vendor or client is a pretty straightforward process that only takes a few minutes. You can even use the built-in Wizard tool to walk you through it.

Lastly, look for the “Expenses” tab after selecting the credit card account and vendor. You can manually enter in the products or items purchased with the credit card. Click on “Ok” after entering the amount and the transaction should now show up under your Quickbooks account.

Because credit card transactions don't automatically update into Quickbooks, you'll have to manually enter them in by hand. Some people may find this a tedious task, but it's necessary to keep your accounting accurate. One little tip that's helpful is to enter your credit card transactions as soon as they occur. Once the transaction has successfully gone through, fire up Quickbooks to enter it. And remember, you can refer back to this article if you are having trouble entering credit card charges into your Quickbooks account.

About the author: Kelly is a content contributor for MyVAO. Kelly enjoys writing about Quickbooks software, new technology and much more. She recommends you check out this website for the best quickbooks hosting available online.

* Image attribution: Author owned and licensed