Credit cards can attract hefty interests if the bill isn’t paid on time. Hence, “managing credit cards” is one of the essential tasks for a QB user.
With the ever-growing adoption of plastic money, credit cards have been able to gain a name for themselves. Credit cards enable a user to borrow a said sum of amount for a specific period of time after which the user needs to pay a fine. But the question is what type of account is a credit card in QuickBooks?
Know about QuickBooks Credit Cards
Users need to configure the account and settings for a credit card in order to use and manage them efficiently and effectively with QuickBooks. Also, you can keep track of all the transactions that happen for a particular credit card by opening up the specific account associated with it. Credit card accounts aren’t available as default accounts in QuickBooks.
You need to create specific accounts for credit cards. You can also use different sub-accounts for entering details of different credit cards. This way, you won’t have to create multiple accounts for handling multiple credit cards.
Steps to Create & Set up a New Credit Card Account in QuickBooks
Learn how to create and set up a new credit card account in QuickBooks. Follow the below-mentioned steps:
- Log into QuickBooks,
- Go to the Lists menu,
- Click on Chart of Accounts,
- To view, the drop-down options click on Account.
- Click on New.
- Select Credit Card under the type of account and click on continue.
- Enter all the necessary information in the new window for the credit card account.
- Enter the name and Type of the credit card. Also, enter the balance by clicking on entering opening balance.
- You can use the bank statement for filling in the information.
- Hit Save and Close.
Steps to Enter Charges to Credit Card Account in QuickBooks
After setting up a credit card account, you need to enter transactions and charges to it. You can easily enter all the credit charges in QuickBooks. For entering charges to a credit card account, follow the steps provided below:
- Select Banking. This you can find on the left side of the screen.
- Enter all the charges that you want to add to the credit card account.
- Hit Credit Card. From the drop-down options select the credit card account that you want to put the charge on.
- Choose the appropriate option:
- Purchase/ Charge: If you want to enter a charge on the credit card.
- Refund/ Credit: If the money is being charged as a refund
- Purchased from. Select the vendor from the drop-down list.
- Add a memo to make the charge more descriptive.
- Enter the expenses you want to track by going to Expenses or Items. Make sure to track them as credit card purchases.
- Hit Save and Close.
All the charges will be directly added to the credit card account. If you set up subaccounts, then the transactions will be posted there. Still, you will be able to access all the charges and payments from the parent account.
Create Multiple Credit Card Reports
You can use the above-entered transactions for creating multiple useful reports. Reports can be created by going to the chart of accounts. You can select the credit card account and apply multiple filters to create a more comprehensive report. You can create both summary and detailed reports for credit cards.
If you are clear with what we had to offer then great but if you are still facing difficulties request you to get in touch with our Experts. Our certified QuickBooks professionals are here to help all 24/7. You can even give us a call at our QuickBooks Consultant for the USA, Canada, and the UK and talk to our Experts now.