• Credit Card Accounts in Quickbooks

  Filed under Business Management Tips, General Tips, Money Out, Special Transactions
  Jun 29
  One of the BIGGEST problems in QuickBooks is figuring out the proper way to capture your business expenses and then pay your credit card.

  Mystery solved! Watch this mini-lesson to learn just how simple it can be.

  

  If you’re wondering about how to record those business charges that were made on your personal credit cards, check out this mini-lesson on paying for business expenses with personal funds

  You can use the exact same procedures, whether you paid for the business expenses out of personal cash or used a personal credit card.

  If you STILL have questions, be sure to post them below, and you may see a follow-up lesson just for you!

  ~Gabrielle

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  Tagged as: business credit cards, credit cards, mixing business and personal expenses, personal credit cards
  
  6 Comments

6 Responses to “Credit Card Accounts in Quickbooks”

1. 

   Catherine Huerta said on July 8th, 2009 at 10:42 am

   Hi Gabrielle,

   Again, you do a nice job of presenting QB materials, thank you. Question: Could a third way of paying your CC be through a Bank transfer? I pay most of my CC via the Bank’s Transfer Funds option. Then in QB I use the same; Transfer Funds. Is there any reason I shouldn’t be doing it this way? Also, have you or will you be doing a QuickTip on Merchants Service and processing those type of transactions? I’m not sure if there is a more efficient way to track all that as well. Thanks for your advice.

2. 

   Gabrielle Fontaine said on July 10th, 2009 at 7:39 pm

   Hi Catherine,

   Yes, you could use the Bank Transfer function if you are making electronic payments to the cc, that would work out fine.

   As far as doing a QuickTip on Merchant Services, the challenge with that is in the sample company files, because they are only sample files, I cannot demonstrate the merchant services because that would mean electronically connecting to the merchant account (which there isn’t one for a sample company). It is the same snag for attempting to demonstrate the Online Banking functions.

   If I find a way around this to demo it, I’ll be sure to do a video for you!

3. 

   TERRY JONES said on November 10th, 2011 at 7:15 pm

   THANK YOU SO MUCH FOR MAKING THIS SIMPLE, MY BOSS THOUGHT USING THE CC PAYMENT PROCESS WOULD BE TOO INCUMBERSOME.

4. 

   Gabrielle Fontaine said on November 11th, 2011 at 9:30 am

   Thanks for the comment, Terry, and I’m glad it’s helpful to you. Though, no need to shout it. (FYI: When typing in all caps, it comes across as yelling!)

5. 

   Cecilia Weston said on January 30th, 2012 at 10:25 pm

   Hi Gabrielle,
   I just finished your demo on “Paying for business expenses with personal funds.” It was GREAT! Now I’m wondering how to record when the business owner uses the company funds to pay for a personal car wash or butter from the grocer. I know he shouldn’t but you know it happens all the time. He just grabs the nearest credit card in his wallet. Also, how do you accurately record the transfer of funds between personal and business accounts? All of my boss’s accounts (business and personal) are from the same bank and he uses the bank’s Transfer Funds feature all the time. Can you help me? Thank you so much!

6. 

   Gabrielle Fontaine said on February 20th, 2012 at 9:05 am

   Hi Cecilia,

   I’m glad you found the video helpful.

   Yes, you are right. As much as business and personal expenses should be kept separate, nearly everyone mixes them at least a little bit every now and then. That may or may not be a problem, depending on the entity type. But from a bookkeeping standpoint, yes it should always be separate. However, when it does happen, the short answer is that any personal expenses that are paid from business accounts should be coded to the owner’s equity account. In other words, it should appear as though the owner is taking money out of the business, the same way as if he was taking cash out of the business. And that applies even when the business is paying for the personal expense directly.

   In your case, if he is transferring money from the business account into a personal account, again that would show as a transfer out of the business because you are not (or should not) be tracking any personal accounts (credit card or bank) in the business books. If he is using a business credit card to pay for a personal expense, simply code the “expense” to the owners equity account.

   I will create a video on this one, since it is so common. But for now, hopefully this helps.

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