For cash flow reasons, sometimes clients need to make credit card payments more frequently than once a month. Here are directions to record all aspects of this process. Enter the Charges Enter the credit card charges. You may either do this manually or download them from your credit card company. To do it manually: Under the Banking menu, select Record Credit Card Charges, then select Enter Credit Card Charges. Record the vendor, date, amount, and type of expense. You may either use the paper receipts, or the credit card statement. To download: Under the Banking menu, select Online Banking, then select Online Banking Center (if you don't have Online Banking enabled, QuickBooks will walk you through the set-up procedure). Select the account in the upper left corner, enter your password, and the download process should start. Some financial institutions use a "web-connect" procedure which requires you to go to their site through the QuickBooks web-browser. Log-in to your account, find the link that says something like, "Download transactions," select the correct version of QuickBooks, and make absolutely certain the date range is correct. Do not download previously downloaded or reconciled transactions. Removing these types of transactions from QuickBooks' Online Banking Center can be time consuming and frustrating. Once all credit card purchases are recorded, not only is the expense recorded, but the amount you owe the credit card company is recorded as well. Make Payments to the Credit Card Company You may make as many payments toward the credit card as you like during the month. Follow these steps: Use the Write Checks function (from the Banking menu, select Write Checks). Use the Write Checks function even if a paper check was not written. Make sure you are using the correct bank account, as shown in the top left corner of the open window. On the Expenses tab, under the Account column, scroll up to select the credit card account you used for the charges. Do not select an expense account here. The expenses were already recorded when you entered the credit card charges. The amount in the Amount column should be the same as the amount on the green electronic "check". This entry takes money from the bank account and applies it as a payment to the credit card account. Reconcile the Statement When you receive the credit card statement, reconcile it as you would for a bank statement. (From the Banking menu, select Reconcile, then select the credit card account you wish to reconcile.) If you wish to record a payment or enter a bill (to make a payment later) after reconciling, you will be given the opportunity to do so. If you do not wish to record a payment or a bill after reconciling, select Cancel. Print a Detailed copy of the Reconciliation report and staple it to the back of the credit card statement. Using this method allows you to make payments when you wish, in whatever amount you wish. Reconciling the credit card statement is an important step to verify that you have recorded everything properly, and that your records agree with the records of the credit card company. |
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