How to record credit card payments in Quickbooks Online

[@psanimes499]

Great video, and how to record if the payment comes from personal funds?

[@JulieG-kh9hj]

Does each payment need to have it's own Transfer entry setup first? What if you are working directly from your bank feeds where transactions are automatically imported in for both accounts, the credit card and checking account? Under the review transactions should these be recorded as "record as credit card payment" option or categorized to their liability? And should they be recorded under the credit card account or the bank account first? My QB accounts are not matching my bank statements and I believe it is in the way I am recording the payments.

[@anjanettemercer4147]

Hi Steve, I moved from Desktop to Online Quickbook platform. I print checks to pay my bills so there is no transfer to credit card, it is just the way my boss prefers it. So My question is Do I record my payment in Charge of Accounts (credit card) Like I did in Desktop QB, or do I write a check through the +new,Check or Do I record it as a bill and print my check that way??? Please advise.

[@displaychicken]

You mention that the details of what the CC charges were for should already be recorded but I don’t know why that was assumed? Can you elaborate? How do I record that? I only use my CC to pay for quickbooks. So every single CC payment is in effect a payment to quickbooks. I’m not sure how to account for this

[@reanamulcahy3262]

Thank you so much for this step by step that is so clear and concise. It has been so helpful!

[@baileyduggan6796]

Hi Steve! Thank you for your videos ~ I am new to quickbooks and trying to assist my mother with some rental properties she owns so I am taking a crash course through a lot of your videos! Her previous assistant was having us input the cc expenses into QB as an expense but hadn't figured out how to input the cc payment into QB and link it to all of the input expenses. The CC is not linked to the QB account because they dont use it only for business purposes and dont want their personal purchases to accidentally link to the business... I hope this makes sense. Do you have any insight/advise / other video links to walk through something like this? Thanks again for your help!!

[@SteveChase1]

If you are making the CC payments from QB then you would really just put that as owner's draws or distributions. For each CC transaction since you don't want to link it to QBO because it has personal on it, you can create a journal entry for each expense. You would click the plus new sign then journal entry. Date the journal entry to the date of the CC transactions and use the debit column for the expense like repairs and maintance and then offset the same amount as owner's contribution. In the journal memo you could say something like I used a personal card to pay for this. Alternatively you could reimburse yourself from the business checking account to your personal account to cover the expenses each month with splitting out the individual expenses categories. Hopes this helps point you in the right direction.

[@MarkCarpenter0025]

Hey, steve thank you for this great video. I have a question for you. I am using Quickbooks to manage personal finances. I have several credit cards that will not link and update in QuickBooks online. Do you have a workaround for getting all these transactions inside qbo? Also, how do you show your payments to those credit cards? I have it just as an expense folder so i can track the payment, but I really want to see all the transactions that we are doing on a daily, weekly, monthly, annual basis.

[@SteveChase1]

Hey Mark, You can manually upload transactions from either an .csv or .qbo file. Depending on your bank you should be able to download transactions then manually import them based on a date range. If you do that then you will have very good records on the date, vendor and dollar amount spent. Once you categorize them in the bank feeds you will have a profit and loss report to run to see it by any custom date range you want. I do have another workaround I use in my practice that converts PDF credit card statements to QBO/CSV files that can be uploaded to QBO for review and posting. If you have a major credit card it should link. You may have to call your credit card company and ask their IT customer support to switch you to allow bank feeds from 2rd party apps.

[@karisbuerger4499]

Hi Steve, this is super simple and makes sense. However, I have one business "parent" credit card and 2 sub (employee) cards. The expenses come into QBO beautifully from each card, but in my bank cc statement the payments are applied to the parent card, and one lump sum pays off all 3 card balances. QB will not let me split a transfer to pay off multiple cards, so I've been entering it as an expense with my checking account as the Payment Account and each credit card as the Category. Do I need to redo all those transactions? And do you have any tips or tutorials on how to "split" the transfer of payment between the 3 cards so the balances aren't off?

[@WillardAlabran]

Steve, I have a Lowes credit card to purchase material for construction jobs. Should I use the transfer feature to make the payment to Lowes? Or should I pay Lowes and charge the payment against the materiel for the construction jobs? I'm confused and my income for last year is way to high. If I had made that much money I by an expensive car or something like that.

[@SteveChase1]

Hey Will, A couple of scenarios and it depends how I answer. Scenario A might be you have never entered individual Lowe's transactions (ie you have a separate Lowe's Credit card register). If that's the case you should enter those expense in the register and then make transfers when applying the payment. One simple method for a QBO cleanup is to record a summarized transaction subtotal for each month getting the number from your Lowe's statement. Scenario B is a bit more complicated as it would require job costing so that each expense is recorded with the Customer: Project so you can run a Profit and Loss by Project. If you have never entered expenses then you could just book the full amount towards job materials and supplies and that will get your Income statement lower as the expenses will be carried onto the financials. - Also as an fyi run your balance sheet and make sure there is zero "uncategorized assets". I see lots of mistakes where QBO was defaulted to uncategorized assets. That's another topic that may be influencing your overstated income.

[@aminahammoumi4731]

Greetings! I am looking for a solution for matching sales receipt in QBO and payments to bank deposits: I am using a cash basis, so when I reconcile sales I have big differences between the books and the bank statements. Any helpful videos? Thanks in advance.

[@TrueFormLife]

Hey Steve, I'm looking for a video on how to record all credit card transactions in quick books. I'm new to quickbooks and I feel like you can do that but I'm not sure if you can. Does this have to be done manually or can you upload a full months statement?

[@SteveChase1]

You can transfer within the bank feeds. For example, go to the checking out for money out and click the transfer button to the credit card in QBO. Then go to the bank feeds of the corresponding credit card and click to match the payment transfer.

[@mschaefer190]

Steve, will this actually initiate a transfer of funds between the linked accounts, or does that need to be done separately outside of QB?

[@SteveChase1]

That needs to be done outside of QBO. You can however now do a bill pay powered by Melio inside of QBO that would send your Vendor (Credit Card company) a check by mail.

[@dianaalbrecht4188]

Hi, Great video. My question is how do I categorize Inventory (cogs) bought with a credit card? So it shows as an asset and also a liability.

[@SteveChase1]

If you want to have the purchase hit inventory asset when it's made on the purchase, you would just need to categorize from the drop down category an inventory asset account. That will automatically balance the same amount to the credit card liability. After you record the bank feeds transaction, you could run the balance sheet and you will see the purchase made inventory asset go up and the credit card liability account go up with it. Then at the end of the year you would need to make an adjusting journal entry on to reduce inventory of what you sold and adjust that to cogs of goods sold account.

[@dianaalbrecht4188]

@@SteveChase1 Thank you so much for getting back to me. This helps a lot!

[@blevinsbookkeeping4918]

Hello- Is this process different if the credit cards are not tracked/fed into QBO? My client only has her 2 checking accounts feeding into QBO. Should the credit card payments still be transfers? or added as expenses? Thanks!

[@SteveChase1]

If the credit card is a business account, it should be connected to QBO and its bank feeds. If the credit card is personal then it should not be connected to QBO. Typically, if there was a business expense that was made on a personal account, then there are ways to record a journal expense with a note that the owner paid it with personal funds. If you pay a personal credit card from the business checking account, then you could most likely do an owner's draw equity or what your accountant suggests.

[@Kingjomi0]

Hi Steve how would I record a credit card payment that came in from a personal checking account not linked to QBO? I really appreciate your help

[@SteveChase1]

Owner's Investment or Contribution. It is an equity account when you use personal accounts to pay down debt coming from an outside account like a personal checking account.

[@aracelirivera8967]

After transferring a payment from your checking account, to any credit card payment and save changes. How can you have this reflect on the Dashboard under Expenses and also Profit and Loss? Does it record this transaction, so it can display how much you pay in credit card bills. Thank you

[@SteveChase1]

Making a transfer does not affect the Profit and Loss. Prior to making the transfer you should enter all the individual credit card charges in the credit card register. Each purchase will have a date/vendor/amount. It is most important that the date recorded in the credit card register so that it uses that date for your Profit and Loss. The only thing that you would see on the dashboard after you refresh would be a change in lowering your cash in your business checking account and also lowering your credit card balance after paying it down.

[@magnoliakeepers]

Hello Steve! If the account that paid the credit card is not attached to QBO, how do you properly account or do the credit card payment? Vendor is the credit card and categorize it to the CC as well?

[@SteveChase1]

You could do owners equity on payments applied towards a credit card coming from a non-business checking account. Verify you did the correctly and run the Profit and Loss for the time period of the credit card transactions. Owner's equity would be the paying down of the credit card.

[@magnoliakeepers]

@@SteveChase1 , thank you for your response! It is actually the credit card. The credit card is linked to QBO and other accounts, but not the one that made the payment on the credit card.

[@SteveChase1]

@@magnoliakeepers Okay - So payment made will be Equity. You may have owner's contribution or owner's equity. That would be how to code the payment to the credit card since it is coming from an account not connected to your QBO.

[@priscilanavarro844]

Hi Steve, can you do a video to reconcile credit cards?

[@SteveChase1]

kzbin.info/www/bejne/gKm4YnmFermMnKc

[@janetdefrino8099]

Steve - how do I split a payment received to account for the Square fee (credit card transaction fee). when I go to receive payment, it doesn't allow me to split the received cash-what is a quick way to record that expense item?

[@SteveChase1]

First you will receive payment and make the funds go to the "undeposited funds" acccount instead of checking. Then you click new> bank deposit. You check the customer payement for the full amount and then at the bottom you add an additional negative Square fees expense. Make sure you enter a minus sign in front of the fee. After you verify that the net deposit will match what hits your bank account you can save and close. Lastly, go to the bank feeds and match the bank deposit.

[@MaggioRacinginc]

Hey Steve I followed all of that. But now what do you do on under banking and the credit card page. Do you just do the exact opposite and transfer the credit card payments to the chequing account. Thanks.

[@SteveChase1]

You would click match. If match doesn't appear then click once on the row and click find match. If they are past 1 year ago you might need to do that. When you reconcile you should reconcile in pairs with the checking account and credit card account month by month.

[@MaggioRacinginc]

@@SteveChase1 the only options I have are cc-credit and transfer. Then I need to select which account it goes into.

[@SteveChase1]

@@MaggioRacinginc You have to make sure there are not duplicates. You can select the transfer or you can go with the drop down from the category and select which account the money if coming from. To verify you did it correctly you can navigate to the credit card register and search the dollar amount. You should see the same amount also when you search the checking account. Then you click on the gear icon to reconcile. When you reconcile you can make certain that the credit payments are correct or make adjustments if necessary.

[@MaggioRacinginc]

@@SteveChase1 ok perfect. Thanks alot much appreciated. Now I just need to figure out the opening balance equity issue I have.

[@SteveChase1]

@@MaggioRacinginc check your register for the very first transaction. Typically bank feeds will automatically create an opening balance equity for the balance that was on the earliest date that the bank feeds was able to fetch your transactions.

[@ashfaqhussain5328]

Hi, Is the transfer like payment of credit card balance from the checking account?

[@SteveChase1]

Yes. You can do a transfer from checking to credit card but it will be recorded manually in QBO from the plus sign in top right corner.

[@mario312]

is in it technically an owners draw?

[@SteveChase1]

It depends. If you are Schedule C (self employed) and and pay down a personal credit card not associated with Quickbooks then you could code it as owner's draw for the payment.

[@tleventh]

I have customers who want to be charged on a specific date each month, although the monthly amount may not be the same. Is there a way to do this? Thank you

[@SteveChase1]

There is not a way to do this if the amounts are going to be different for an automatic billing. You can however send recurring invoices that if you check the box to "include unbilled charges" it will do that. To make an unbilled charge you can create "delayed charge" form. But keep in mind that invoices for recurring will only get paid if the customer pays on their end and the only automatic thing will be the emailing of the invoices.

[@ShawnDietzer]

How do you record the interest charges from the credit cards?

[@SteveChase1]

You would record an interest amount based off your statement. When you reconcile your credit card you should include the interest as it's own separate transaction with the date recorded going off your credit card statement. You have to reconcile your credit card account each month to make sure your books are 100% accurate recording credit card charges.

[@mchegoun]

I did all that but in my legend report it shows I owe Amex a large total.My accountant says the balance should be zero and no balance

[@SteveChase1]

A zero balance is what QBO balance sheet should have if that's what it is per your statement. Since you have an overstated balance then that means either you have duplicates entries or errors somewehere before you started connecting to the QBO bank feeds. I have found that the first place to look is the very first transaction in the register. If you connected to the bank feeds in QBO and it had a balance 90 days ago then it will add opening balance equity which could be removed after you consult with your tax preparer. The other thing to do is every month is to reconcile the account and that is the truest way to ensure your books are accurate. For help reconciling here's a tutorial, kzbin.info/www/bejne/oJbdcqeYhdlqnZY