Complete Process of Paying and Recording Credit Card Bill in QuickBooks

There are several ways in which you can “pay and record credit card bills in QuickBooks“. The flexibility provided by QuickBooks in this regard shouldn’t be taken as an invitation to not properly record the payment.

For maintaining accurate financial data, you must be vigilant and avoid data errors at all costs.

How to Pay and Record Credit Card Bills in QuickBooks

In this article, you’ll learn how to pay and record credit card bills in QuickBooks. There are three main options that you have for recording a credit card bill payment. These options are mentioned below:

• Record the transaction directly with the Pay Down Credit Card option.
• Write a check to record the bill payment.
• Record the Bank Transfer made to pay the credit card bill.

As you may have assumed, the first method is the simplest and the most recommended. However, if you’ve been using any of the alternative methods to record credit card bill payments, then we’ve provided the steps for that too.

Pay and Record a Credit Card Bill Payment

To record credit card bill payment via QuickBooks, follow the steps provided below:

• Click on New.
• Click on Pay down a credit card. The option is provided under Money Out/Other.
• Choose the Credit Card for which you wish to make the payment.
• Enter the Amount for payment.
• Input the Payment Date.
• Choose the Bank Account through which the payment was made.
  • If payment was made through a check, then mark the option ‘I made a payment with a cheque.’
  • Enter the Cheque No or the EFT number.
• Click on Memo and attachments to enter additional information or attach files.
• Click on Save and Close.

Record a Credit Card Bill Payment through a Cheque in QuickBooks

This is the easiest way to record a credit card payment, but there are alternatives available. If you’ve been using another method to record credit card payments, then you can continue with them in QuickBooks.

To record a credit card bill payment made through a cheque, follow the steps provided below:

• Click on New.
• Click on Cheque under Suppliers.
• Choose the Supplier from the Payee field.
• Choose a Bank Account or Credit Card from which you’ve made the payment. You can make the choice from the Bank Account field.
• Input Payment Date and a Mailing Address.
• Enter the Cheque No or EFT no.
• Click on the Category dropdown menu and make the appropriate selection.
• Enter Amount to be Paid.
• Enter a description and notes under Memo.
• Click on Save and Close.

Record a Credit Card Bill Payment Through a Bank Transfer in QuickBooks

To record your credit card bill payment made through a bank transfer, follow the steps provided below:

• Click on New.
• From Other, Click on Transfer.
• Hover over the Transfer Funds Form, and select the Bank Account from which the payment was made.
• Hover over Transfer Funds To, and select the Credit Card for which you made the payment.
• Enter the payment amount in the Amount field.
• Input the Date for the credit card bill payment.
• Enter additional information under Memo.
• Click on Save and Close.

How to Reconcile your Credit Card Transactions

Reconciling transactions is important to ensure that the transactions present on the bank statement show up in your journal as well. To reconcile credit card transactions before paying the bill, follow the steps provided below:

• From Settings, click on Reconcile
• Choose the appropriate Credit Card Account.
• Go through the bank statement, and enter any missing transactions.
• After ensuring that the difference between the bank statement transaction amount and the recorded amount is zero, click on Start Reconciling.
• Match the transactions with those on the bank statement.
• Click on Finish Now. Hit Done.

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