How to enter Credit Card Charges into QuickBooks

hey it's Candace and today's QuickBooks tip and trick is all about credit cards so recently I've had a few clients who came to me and they're like Candace I have my credit cards are all screwed up and so usually that stems from a couple different problems but the main one being clients are summarizing their QuickBooks or their credit card statement and putting that into QuickBooks in one transaction and what happens with that is is if you're not entering in each individual transaction each charge each credit you end up getting where stuff doesn't balance and what typically happens is you start looking at it after the whole years gone by and you're getting ready for your taxes so if you're not entering in each individual credit card transaction so each time you charge your card at the end of the year if you're not reconciling it which is a huge thing to do it's really how you know that you've entered in everything accurately you may be paying too much money in your taxes because you've missed some expenses so come look over my shoulder I want to teach you how do you enter in your credit card charges and this is my tip for you enter as soon as you get your statement your credit card statement sit down have within a day or two and in turn all your charges because what happens is if you wait till the end of the year you'll sometimes forget what they were for you don't think you will but people do sometimes a month is even too long for some people so make sure you're reconciling your credit cards your bank account and any loans you have preferably each month when you get your statement so that way you can keep up on it and if you're a busy entrepreneur you are able to just kind of do a little at a time as you get your statements so come look over my shoulder I want to teach you how do you enter in credit cards okay so I'm not sure if you guys already have credit card setup or not so I'm in the first step we're going to do is I'm going to teach you how to set a credit card up inside of QuickBooks so we're going to go here under lists chart of accounts we are going to go down to account add new we're actually going to select a credit card and I'm just going to make a credit card named credit card this what you'd normally write here is whatever your card is so let's just say you had a capital that's a good example a capital one card if you already had a balance before you started using QuickBooks on that card and you don't know what all the charges were for you can click inner opening balances find your statement prior to when we're going to start so if your credit card statement let's say you want to enter you just want to start using QuickBooks for the year of 2015 you're going to find your credit card statement that ended prior to the January 1st date so just say your credit card statement usually they're weird that come out they end it like that's 16th or 21st or they're usually not the first to 31st so if that's your case then you're going to have a credit card statement starting sometime in December that goes from December through January whatever the opening balances let's just say for example it was $1,000 and that was as of December 18th of 14 because you want to make sure that you enter you can go and enter all of the December transactions from that's that are on that statement and then anything that goes on into January so that way you're not missing any of your January statements and credit cards are considered cash basis which means the moment you charge the card they assume you're going to make the payment so it's a business expense at the moment you charge the credit card so even though December it's going to be in there and you're only keeping track of 2015 there'll be a few transactions for December but they will not impact your profit and loss for the time frame you run in in 2015 so I hope that makes sense just know you can enter in transactions in December of the previous year and they will not affect your income and expenses for the current year so you'll find your statement you can enter in the balance the date of the statement date not the due date of your payment but the statement date and then you're going to hit save and close we're not going to set it up for online we'll close that so now when we go in there we create credit-card and opening balances $1,000 you can enter your credit card you can get to the credit card charges entering credit card charges in two ways banking enter credit card charges here or in the banking center you'll see down at the bottom says enter credit card charges now these are the charges you charge on your credit card not the charges that maybe you have as a merchant provider so if you charge somebody's credit card for services you provide that's not what we're talking about what we're talking about is your personal credit card your business credit card when you go out and you pay for your fuel or different things that you purchased through your business credit card travel expenses for the business those kinds of things you're going to enter those in to QuickBooks so you're going to click enter credit card charges in one or the other way it will take you to the same place if you have more than one business credit card you can enter multiple just make sure here at the top you have the credit card that you want to enter the credit card charges against meaning the card you used so the area here is the vendor the vendor is the place you spent the money so let's just put an office depot I like office depot as an example and let's just say we're going to enter in the January transactions and we're going to say that January 5th we went bought some office supplies for the new year and we spent $100 even for example you can put the memo in of how you spent the money there then you can put in your expense category now up here I want to go back for a second the top is capital one that credit card we added this is when you purchase something and in this little section is if it's a refund and you'll notice it changes it so if it's a charge you want to make sure you select that and then you'll notice it has our balance that we said it started with we picked our vendor vendors a place we spend money you'll see there's all kinds of different things in here and then the date that the transaction happened on the credit card statement or your we see if you want to enter an invoice number or something like that you can here you don't have to the amount that you spent the memo if you want to put in what it was for what type of expense it was the dollar amount you spent another memo if you want if it goes against a particular job job costing and if it's billable you can actually select billable there that's as simple and easy as it is you can attach a file so you can actually scan something and submit it if you want in QuickBooks will keep track of it and you can download your transactions I typically have people enter each transaction because II when you download it there's still work that you have to do to make sure it goes to the right places then you're going to hit save and new and that will bring you up to enter your next credit card transaction and you're going to go through and you're going to enter in let's just say 7-eleven on the 9th and we're going to say we spent $45 for fuel fuel automatically populates because it's been used before $45 it's not for a particular job or customer and it's not for and I don't want to build that customer so then you're going to click Save and close once you've entered all your transactions in so you'll go through your whole statement you'll enter each individual one to where you spent the money to the dollar amount of the type of expense and then when it's all said and done you're going to go up under banking here and click reconcile or you're going to click here it's the same as your bank account but we're going to do it for your credit card so click reconcile and you're going to go in and you are going to select your capital one and you're going to put in your statement date so let's just say we think that the statement into January 16th and we're going to put in thousand dollars and we entered in a transaction for 145 so we'll just do this and we didn't have any finance charge in this example if if you had a finance charge you can actually enter that in the date and then you can decide which type of account you want maybe you have finance charge and QuickBooks will actually enter that as a business expense for you click continue I deleted that because I didn't have any in this example then you're going to come in here and any credit card payments if you had entered a payment would show up that would be your pain down your credit card or you return something that you purchased on your credit card and the credit card company gave you a credit that would show up here and then you're going to select gonna match you know yes this was on my credit card statement yes this was on my credit card statement so my beginning balance was a thousand I had one hundred forty-five dollars in charges so my ending balance that I entered was 1145 and my clearing balance between what my bounced previously was and my charges and transactions matches and you always want to make sure it says difference is zero now little tip and trick I'll give you if you are way behind you're trying to catch up if you check mark this little button anything beyond the statement date that you're currently reconciling will disappear so just say we're in the March or April you're watching this video and you're going to start from beginning of the year I recommend you enter all your credit card charges then reconcile it enter all the credit card charges then reconcile it but if you already have credit card charges and you haven't been reconciling you can actually check mark this little box so I hope this video has been helpful for you if for any reason this doesn't match you can always click modify and change maybe you accidentally entered the wrong ending balance or you forgot to enter your charges you would enter it there okay and then click continue and then hopefully it matches never reconcile your account if this difference is anything but zero but zero you're going to go if it's not you've missed something and that's the whole purpose behind reconciling this so I hope this video has been helpful for you if you know somebody who could benefit from it please share it and if you have any QuickBooks questions please leave a comment below and I'll create a video for you and if you want to keep up on the current videos I'm creating to see all the new ones that come out please subscribe have an amazing day take care I'll talk to you soon

Channel: Candus Kampfer

Views: 81,425

Rating: 4.9305553 out of 5

Keywords: Credit Card (Industry), Taxes, how-to (website category), accounting software, small business, Candus Kampfer, Candus Kampfer QuickBooks, enter credit card charges, quickbooks, enter credit card, quickbooks tutorial, quickbooks credit card transactions, credit card charge in quickbooks, enter credit card charges into quickbooks, quickbooks enter credit card charges

Id: vfYIdrufVwo

Length: 10min 56sec (656 seconds)

Published: Wed Mar 18 2015