Reconciling Credit Card and Making Payments in QuickBooks 2019
Watch QuickBooks 2019 video tutorial below. Learn about reconciling credit cards and how to make payments.
We are working in module nine and we’re talking about working with credit cards. We’ve already talked about how to set up those credit card accounts in the Chart of Accounts. We learned how to enter the credit card transactions. Now, we need to talk about how to reconcile those credit card statements (when they come in the mail) and how to make a payment on the credit card.
Once you have your credit card statement, you’ll want to go ahead and reconcile it. Just like we did back in module seven, we reconciled our checking account.
From the Home screen, I’m going to choose Reconcile. And then, it’s going to ask which account would I like to reconcile. I’m going to choose my credit card. You’ll want to go ahead and double check the statement date (make sure it matches what’s on your statement). If it doesn’t, just go ahead and change it here.
Also, make sure you’re beginning balance matches. If you balanced last month, then, this month should be the same number. If it’s not for some reason. Just go ahead, get out, and figure out what you did wrong. And then, come back in and continue reconciling.
You will need to type in your ending balance that will come from your statement. You’ll also need to put in your finance charges. Some people actually put their finance charges in as a separate transaction. That’s certainly okay! Just don’t put it in both places or you will have doubled that number.
The account you’ll want to choose is going to be finance charges. If you notice, they’ve got this set up in a really good way. They have the main account as an expense account called, Interest Expense. Underneath it, are two subaccounts for finance charges and loan interest (this would be your finance charge). Also, make sure you have the correct class chosen if you’re using the class feature.
I’m going to hit Continue and now I’m going to see a list of all my transactions that are on this statement. I’m going to check them off if they’re on the statement. If you see something, not on the statement, it might clear next month.
But, keep an eye out for things that maybe you’ve duplicated or that never show up. And then, you can go ahead and fix those the way you know you’re balanced is (if your difference in the bottom right is zero).
I’m going to go ahead and click Reconcile Now. It’s going to pop up and ask me if I’d like to go ahead and make a payment now.
Would I like to write a check or enter a bill and pay it later? It’s okay to enter the bill this way. Because at this point, all the expenses have gone to the correct accounts based on the fact that you put them in individually.
We’re going to go ahead and write a check now and click OK. And then, it’s going to pop up and ask me if I want to print any of the reconciliation reports. I do have the option (just like we talked about before) to do the summary or the detail or both. I’ll just go ahead and hit Close now. Here’s my check in the background waiting for me to okay it.
I’m going to go ahead and put in whatever I want in the number field. If I happen to pay it with my debit card or maybe it was electronically withdrawn, I could go ahead and choose that option.
Also, you’re going to need a vendor to pay to the order of or a payee as it’s called. I’m going to put Visa. Sometimes, people get confused with this Visa and this Visa. But, remember these are two different lists.
This is a list of your vendors and this is a list of your Chart of Accounts. If this confuses you; you might have a different name for your vendor. It’s totally up to you!
Now, it assumed, I was paying everything that was due, but I’m not! I’m only going to pay $700. So, I’m going to type that in. And then, make sure it’s changed down here as well. It won’t remember the balance here. So, you’re not going to have that situation I talked about earlier where you have that snowball effect.
All I’m going to do now is hit Save & Close. Now, that is complete.
I want to go back and look in the Chart of Accounts and look at my credit card register. I’m going to double click and open it. And now, you see all of the transactions. You can see here, the three, that we actually set up. Then, you’ll see the payment as well right up here.
Now if you notice, I’ve made the payment before my transactions occurred. So, I’m going to go ahead and edit that payment and I’m going to date it for January the 12th. Now, if I Save & Close, that payment should move down in the register where it belongs and you can see it has.
That’s a quick way to work with your credit cards.
You want to go ahead! Make sure you have the credit card account set up. Enter the charges separately. Also, go ahead and make your credit card payment.
Let’s go ahead and move now over into module ten where we’re going to talk about customizing our forms.
Cindy McGuckin
Cindy McGuckin is an IT trainer with over 20 years of experience. Cindy currently manages the IT Training Department at Trident Technical College, she's a Member of the Association of IT Professionals, Charleston, SC chapter and the Treasurer of the South Carolina Association of Continuing Higher Education. Cindy is a Microsoft Office and QuickBooks expert and her online courses have received hundreds of 5-star reviews. Her no-nonsense approach to teaching complicated topics makes her classes engaging and interesting.
