Learn how to record payments you make to your credit cards in QuickBooks Online.
QuickBooks Online allows you to record credit card payments in multiple ways so you can keep track of your expenses and maintain accurate financial reports. In this article, we'll show you how.
Pay down a credit card
This is the main way to record your credit card payments in QuickBooks.
- Select + New.
- Under Money Out (if you’re in Business view), or Other (if you’re in Accountant view), select Pay down credit card.
- Select the credit card you made the payment to.
- Enter the payment amount.
- Enter the date of the payment.
- Select the bank account you paid the credit card with.
- If you made a payment with a check, select I made a payment with a check. In the Check no. field, enter the check number, or if you paid electronically, enter the EFT number.
- If you want to add notes or file attachments, select Memo and Attachments and follow the instructions on the screen.
- Select Save and Close.
Alternative methods
Have you already been using other ways to record credit card payments? You can keep using them if you prefer.
Write a check: If you made a credit card payment using a check, you can record it in QuickBooks by creating a check.
- Select + New.
- Under Vendors, select Check.
- In the Payee field, select the (Vendors name) for the credit card payment.
- In the Bank Account field, select the account from which the payment will be made.
- Enter a Mailing address and select a Payment date.
- In the Check no. field, enter the check number, or If paid electronically, type the EFT.
- Uncheck Print Later if the check was already issued.
- Enter the Category details and a payment amount.
- Enter a description and an amount.
- Enter notes under Memo.
- Select Save and Close.
Make a payment after reconciling your credit card
Step 1: Reconcile your credit card transactions
- Go to Settings ⚙, then select Reconcile.
Tip: You can also select Reconcile from the Transactions tab in the MENU ▼. - If it's your first time, select Get started and Let's do it.
- Select the credit card account.
- Enter any missing transactions from the statement and adjust any incorrect transactions, if there are any.
- Once the difference is zero, select Start reconciling.
- In the Reconcile screen, select the checkbox next to the transactions that match the transactions on your statement to mark it as cleared.
- Select Finish now, then select Done.
If you run into any issues with your reconciliation, learn what to do if QuickBooks Online doesn't match your statement at the end of a reconciliation.
Step 2: Pay your credit card transactions
Choose how you want to pay your bills:
- Pay all or a portion of the bill now: Pay in full or make a partial payment.
- Enter a bill to pay later: Moves the balance in the credit card account to Accounts Payable so you can pay it later.
- Done: If you don't want to record credit card balance payments or bills when reconciling.
| Tip: | Businesses using Cash Basis, bill, and bill payments for credit cards may show as unapplied cash on the Profit and Loss report. |
Use banking download
If the credit card and the bank account you use to pay the credit card expense are connected (bank feeds), you can record the payment by transferring the record.
Transfer the payment
- Select Expenses from the Expenses tab in the MENU ▼ (Take me there).
- Select the account you need to transfer the payment from.
- Select the transaction, then select thePay down credit card radio button.
- Select the Transfer account ▼ dropdown menu and select the account you want to send the transaction to.
- Select Confirm.
Alternatively, you can transfer the payment with the Record as transfer option:
- Select Expenses from the Expenses tab in the MENU ▼ (Take me there).
- Select the account you need to transfer the payment from.
- Select the transaction, then select the Record as transfer radio button.
- Select the Transfer account ▼ dropdown menu and select the account you want to send the transaction to.
- Select Confirm.
Match the transaction
Once you're done with the transfer of the transaction, you need to match it with the new account.
- Select the Recognized tab and locate the transaction.
- Under the Action column, select Match.
FAQs
1. It helps clients stay on top of making payments on time. 2. It ensures that payments to credit card accounts are categorized correctly.
How to record credit card payments in accounting? ›
Credit Card Payments
- Use your actual bank account as the Checkbook (the account the payment comes from).
- Place your liability account under the GL Account column (the account the payment is applied to).
- Check the box to Automatically Import these items.
How to record credit card payments in QuickBooks Online
- Log into QuickBooks.
- Select “Banking” from the left menu.
- Find and select your credit card account.
- In the “Review” tab, choose the transaction to categorize.
- Fill in details like your vendor or consumer name, the expense category, and add custom labels if needed.
Your customer pays the invoice outside QuickBooks
- Select + New and then Expense.
- In Category ▼, select the liability account created to track Line of Credit loans.
- In Amount, enter the total payment. ...
- Check to make sure the date and bank account are correct.
- Select Save and close.
1. It helps clients stay on top of making payments on time. 2. It ensures that payments to credit card accounts are categorized correctly.
How to record a payment to a credit card in QuickBooks? ›
Select + New. Under Money Out (if you're in Business view), or Other (if you're in Accountant view), select Pay down credit card. Select the credit card you made the payment to. Enter the payment amount.
How do you treat credit card payments in accounting? ›
Treating credit card charges as cash-basis transactions is the conservative approach that fits the majority of our customers. However, if you prefer, you can treat your credit card account like Accounts Payable/Trade and Other Payable and not recognize the expenses until you pay the credit card bill.
Is a credit card payment an expense or transfer? ›
By design, Quicken Simplifi considers Transfers, including Credit Card Payments, to be neither an income nor an expense, and therefore excludes them from the Spending Plan by default. This is because you're simply moving funds from one account to another, which does not change your net worth.
How to categorize bank and credit card transactions in QuickBooks Online? ›
Go to Transactions, then select Bank transactions. In the For review tab, select the transaction you want to split. Note: If the option is Match, change it to Categorize.
Do credit card payments count as expenses? ›
Fees related to personal credit cards are not tax deductible. If you use a card for business purposes, you can deduct fees on those cards that the IRS deems “ordinary” and “necessary” for tax purposes.
Track your line of credit
- Select + New.
- Under Vendors, select Check.
- In the Payee field, select or enter the financial institution's name.
- In the Bank Account ▼ dropdown, select the financial institution.
- In the Category field, select Line of credit. ...
- In the Category field, select Interest paid. ...
- Select Save and close.
- Select + New.
- Select Credit card credit.
- In the Payee field, select the appropriate vendor.
- From the Bank/Credit account ▼ dropdown, select the credit card where you received the refund to.
- Enter the Payment date, refund Amount, Tax and Category. ...
- Select Save and close.
Set up credit card accounts
- From the Company menu, select Chart of Accounts.
- Select Account or the plus + icon, then New.
- Select Credit Card, then select Continue.
- On the Add New Account window, enter the credit card name. ...
- Select Enter Opening Balance... then enter the account's balance and date.
- Select Save & Close.
From the QuickBooks Home page or the Customers menu, select Receive Payment. In the Received From drop-down, select the customer's name. Enter the Amount received. Make sure the date is correct, then choose the Payment method.
How to receive payment by credit card in qbo? ›
Check the instructions below to get started.
- On your new Sales Receipt or Receive Payment screen, specify the following information: ...
- Enter discount, tax, and shipping amount (if applicable).
- Choose how you want to enter the credit card info. ...
- (If swiped) Let your customer sign with their finger. ...
- Select Charge.
A payment against a Card Balance is paying against that credit card type of liability account in your file, the same as ane debt payment is not expense but Liability payment. In other words, paying VISA or AMEX is a debt payment, it isn't the purchase of something.
What is the journal entry for credit card fees? ›
In your journal entry, you must: Debit your Cash account in the amount of your Sale – Fees. Debit your Credit Card Expense account the amount of your fees. Credit your Sales account the total amount of the sale.
What expense category is a credit card payment? ›
A card payment isn't an expense, the expenses were recorded already in the card account. The use of an Income category makes you wealthier. The use of an Expense category makes you poorer.
Where does credit card payment go on balance sheet? ›
It appears under liabilities on the balance sheet. Credit card debt is a current liability, which means businesses must pay it within a normal operating cycle, (typically less than 12 months).
