If you’re using a credit card in QuickBooks, be sure to add the card details to your account. This will allow you to track your spending, make payments, and more. Read the article to know how to record credit card service charges and credit card dues in QuickBooks.
Recording Credit Card service charges is just as vital. These charges can be monthly or yearly based. Further, recording these transactions will be beneficial as they will enable you to create more accurate financial statements. Also, these transactions need to be taken into account when filing taxes. Let us take a look at how we can record credit card service charges in QuickBooks.
How to Record Credit Card Service Charges in QuickBooks
- Go to the chart of accounts from the List menu.
- Select the credit card account to which these service charges are to be added.
- Select the Credit card provider by clicking on Vendor.
- Enter the service charge amount.
- Select the account through which you want to track this expense. Make sure to select an expense account instead of an income account.
- Hit Record.
After completing the aforementioned steps, you can easily track all credit card service charges via the expenses account that you connected while performing the steps given above. However, it is not a compulsion to record and manage credit card service charges with a credit card account. You can do this easily with a simple expense account.
How to Record Credit Card Dues in QuickBooks
While adding charges is essential, paying and recording credit card due amount is also just as essential. While charges are recorded on the credit side, payment of credit card due amount is recorded on the debit. This helps in balancing out the entire account. This will also help you in reconciling accounts and in creating more accurate balance sheets and other financial statements.
- Select Banking from the left navigation menu.
- Click on Write Checks.
- Select the bank account that you want to work with.
- Select the bank through which you will pay the credit card dues.
- For selecting a particular bank account click on the Bank Account option.
- This will bring up all the bank accounts that have been created in QB.
- You can add a new bank account by clicking on Add New button.
- Fill in all the necessary information such as Payment Date, name, and information of the credit card provider, amount to be paid against the total due amount.
- Open the Expenses tab.
- Select the credit card account that you want to work with
- Hit on saving and close.
Make sure to tally the debit and credit sides of each and every credit card account and subaccount. In case they aren’t equal, track all the charges and payments added to the account. Make sure all the data is entered correctly. Keep on working on the data till both the credit and debit side of the credit card account and all its sub-accounts are equal.