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#How to use credit cards in quickbooks 2018 desktop full
#How to use credit cards in quickbooks 2018 desktop download

Otherwise, the accounts payable balance will be intermingled with growing and longer outstanding credit card balances.Ĭredit Card type accounts should be used for many reasons. Entering a bill is only recommended when the credit card bill is paid in full each and every month.

#How to use credit cards in quickbooks 2018 desktop full

If the credit card statement covers more than one month or accounting period, two entries might be desired to properly account for the dates of the transactions.Ĭlients that pay a credit card statement in full can shortcut the process by simply entering the total of the credit card statement as one bill, again after summarizing the charges for segregating to the proper accounts. Advise the client that when using this manner of recording charges and payments, the date of the credit card charge is the date the financial statements will be affected. An account line item is added and the total charges for each account type are entered. One charge is created with the detail of the credit card statement from the client’s summation being entered as one credit card charge. A Credit Card account is still established and from the Banking menu, Enter Credit Card Charges is selected to enter the transaction. This is easily accomplished after the client has summarized the transactions for the bill. Instead the client wants to enter one summary transaction for all charges appearing on the bill.

#How to use credit cards in quickbooks 2018 desktop download

Often, clients will not want to enter or download the individual charges that appear on a credit card statement. All debit card transactions should be entered directly into the bank account’s check register, not via the Credit Card account type. This is different than a debit card that is tied to a bank account. The type of the account will be Credit Card. An account should be established for each credit card the client has for its business. The credit card errors discussed here involve the credit cards clients possess and use to make charges and pay for expenses.

The bank account balance appears correct.

Accounts payable balance is high with numerous credit card bills.

Credit card accounts are not reconciled.

All credit card bills are recorded to the same expense account.

Accounts Payable is used to enter bills for revolving debt balances.

The client only makes partial payments on its credit card bills.

A QuickBooks ® account should be established for each credit card the client has for its business.