It’s not difficult to enter credit card payments into QuickBooks. In this post, we show you how to reconcile an account in QuickBooks to record credit card entries. The entries made against the credit card bill can be reconciled incrementally when the credit card bill arrives. Reconciling the credit card account is almost identical to reconciling the bank account in preventing unauthorized charges.
What is Reconciling of Credit Card in QuickBooks Online?
To reconcile several credit card accounts, you need to add the ending statement balance. After that, you can match your particular transaction with the one in your QuickBooks account. When all the transactions clear on your statement, then your QuickBooks accounts balance will match the statement balance. Now your account is reconciled.
Why Reconcile Credit Card Accounts
It’s not uncommon for banks to make mischarges or mistakes when you’re already in a tough financial situation. Credit card reconciliation lets you easily fix this issue.
- Catch mistakes like incorrect amounts or duplicate charges
- Prevent fraud activities in your company
- Simplify tax time
To reconcile a credit card balance in QuickBooks, follow these steps.
- Launch the reconciliation screen
- Enter your statement information
- Reconcile your transactions
- Confirm $0 difference
- Write a check to pay now or enter a bill (optional)
1. Select Reconcile
Click on the Reconcile icon towards the bottom of your QuickBooks Desktop homepage. You may also tap on the Banking menu that appears in the top portion of you screen, then select Reconcile from the left-hand side of your screen.
2. Enter Your Credit Card Statement Information
After clicking the Reconcile icon, a pop-up screen will appear, asking for information from your account statement.
- Account: Choose the credit card account that you want to reconcile.
- Statement Date: Enter the end date of the statement period.
- Beginning Balance: Your QuickBooks Desktop software reconciles your business account automatically.
- Ending Balance: Enter your credit card balance to see the ending amount.
- Finance Charge: Input the interest on your credit card statement, including the date and the expenses you want to charge. This will create a credit card transaction for interest expense, so if you’ve already input an expense use this field blank in this step.
- After entering all information, click Continue.
3. Reconcile Your Transactions
Once you click Continue, the summary of the reconciliation will appear. On the first page of the reconciliation you can see all the transactions related to your credit card account register.
Below is a sample credit card statement to help you identify your income for the year. Review the data in this sample statement as it will be used throughout this course.
Review your transactions to see if there was a problem with the one that you paid for. If not, payment should be returned to you once everything has been reconciled.
Find the Transactions From QuickBooks on Your Credit Card Statement.
Review every transaction in QuickBooks and match it to your credit card statement. For every transaction that matches your statement, click on the checkbox next to the transaction. As you put a checkmark on a transaction, you will notice that the cleared balance and difference on the lower right side of the screen adjust. Your goal is to make the difference $0
If you see a transaction in QuickBooks that is not in your credit card statement, please don’t delete it. It is most likely a transaction that will show up on next month’s statement. Any unmarked transactions this month will appear automatically in next month’s reconciliation. However, if the charge is more than a month old, then it needs to be investigated to see if the entry in QuickBooks is wrong.
Our credit card statement contains the transactions from a company called Accounting Firm, Anderson’s Hardware, Vin’s Diner, and My Electronics Store. The same transactions are recorded in quick books software.
Trace From Credit Card Statement to QuickBooks
If there is a transaction on your statement that is not present in QuickBooks, then you need to add it. You will notice that the transaction for Postmaster for the amount of $173.24 is not recorded in QuickBooks in our sample credit card statement. In this case, since it’s a legitimate transaction, it should be added to QuickBooks.
To create a new transaction in QuickBooks Desktop, open the Enter Credit Card Charges screen from the Banking menu. Enter the correct information based on your credit card statement.
Click Save & New, and the transaction is added to the reconciliation screen.
4. Confirm $0 Difference
You will know that you have reconciled your credit card balance successfully when the difference between your statement ending balance and cleared balance is zero. You will also notice on the screen that there is a Modify button, which allows you to change the amounts you entered in Step 1.
5. Write a Check to Pay Now or Enter a Bill (optional)
After clicking Reconcile Now, Reconciler will appear asking if you want to write a check for the amount due now or enter a bill. If you don’t want to execute either of the two actions, click Cancel and you’re done. Otherwise, choose your option and click OK.
- Write a check for payment now: Create a check for only the portion of the credit card balance you want to pay.
- Enter a bill for payment later: Enter a bill to pay the balance by the due date. This creates an overdue bill that will appear in your unpaid bills screen.
As soon as you select one of the options in the dialog box that appears, QuickBooks takes you directly to the right checks window or to the enter bills window, depending on the amount owing.
- The credit card account has already been charged with the bill or check
- The credit card amount is already entered.
- The only thing you need to do is select the company to which you want to pay your credit card balance.
- After printing the check or saving the bell, print the check.
Whenever you require further assistance reconciling your accounts in QuickBooks Desktop, it is always possible to speak with our LIVE CHAT agents. Our team is ready to assist you. Keep your health and safety in mind.
