How To Set up, Use, and Pay Credit Card Accounts in QuickBooks Desktop

Want to learn how to set up, use, and pay credit card accounts in QuickBooks Desktop? Nothing to worry about, here we are with an article comprising all the details related to credit card accounts. The credit card provides the possibility for users to borrow money to make investments or to pay bills. Users also have the option to set up and pay a credit card account in QuickBooks Desktop that will help you tracking fees and payments made for any purchase. If you need any suggestions or help contact us through toll- free: +1-844-405-0904

Some important points you should know about credit cards before using them in QuickBooks Desktop.

• A positive balance indicates that your credit card has a pending balance.
• A negative balance indicates that your credit card has overpayments that you made (the total amount you paid from your credit card is more than your due balance).
• Zero balance indicates that you have not charged any fees or you have paid the outstanding balance.
• If you are a credit card sub-accounts holder then you can enter fees and payments in the sub-account and they will be available in the register of your respective account. Here you need to make sure the total expense of these charges and payments must be equal to the total balance for the original account. You just need to consolidate the original account.

Steps To Set up, Use and Pay Credit Card Account in QuickBooks Desktop

How to Setup Credit Card Accounts

Go through with the following steps to set up a credit card Account

• Open QuickBooks, go to the Settings ⚙ and look for the Chart of Accounts and click on it.
• Later, click on Account, then choose New.
• Pick the Credit Card option and go with Continue.
• After that, go to the Add New Account window and type your Credit Card Name. Note: If you want to set up a sub-account then make sure to check Subaccount from the drop-down and click on the parent credit card account. 
• Now you need to click on the option, When do you want to start tracking your finances from this account in QuickBooks?
• Now, insert your account’s balance.
• When you completed all the above steps, Go to Save option and Quit this window.

How to Enter Credit Card Charges

The below steps allow you to owe the amount in the credit card account (other Current Liability) in the Chart of Accounts.

• First go to the Enter Credit Card Charges, under the Banking menu option.
• Click on the Credit Card drop-down, then click on the appropriate account.
• The purchase/Charge amount will automatically be selected by Quickbooks. Choose the Refund/Credit, If you need to record credit or refund via the credit card that you received.
• From the drop-down, choose the Purchased and click on the vendor.
• Here, be sure the date you enter should be accurate.
• This is an optional step, Insert a memo that describes your charge (or refund).
• Now, back to the Expenses or Items option and insert the expenses/items you require to track.
• When you completed all the above steps, Go to Save option and Quit this window.

How To Pay credit card charges

This step below reduces the credit card amount from the amount paid through the check window. Check out the below steps:

Note: We always advised users to pay by credit card at the end of a reconciliation, but you can also pay by credit card through the write check facility. Your payments will display on your registered credit card including your fee and then you can easily reconcile the account as usual.

• Choose Write Checks under the Banking menu option.
• Here, choose the bank account you need to use for paying the credit card under the Bank Account drop-down.
• Choose the payment date.
• Now look for the option, name of your credit card company below the Pay to the order of drop-down.
• And later, Insert the amount of your payment.
• Click on the Expenses option and choose your credit card account. Note: If you want to make the payment for the sub-account then you have to insert a line for every sub-account, later enter the amount you have to pay. Make sure, the total amount must be equal to the total amount reflected for the parent account.
• If you are paying for sub-accounts, Insert a line for every sub-account then enter the amount you have to pay. Here you need to make sure the total amount should be equal to the total amount shown for the original account.
• When you completed all the above steps, Go to Save option and Quit this window.

Steps to Pay Credit Card Charges After Reconciliation

There are 2 options that are available for you to pay a portion of the outstanding balance, after the reconciliation of your credit card.

• Write a Check for payment now: This option is for expenses that need to be paid frequently.
• Enter a bill for payment later: This option is for vendor bills that need to be paid later or any future date.

Steps to Enter Credit Card Annual and Finance Charges

• First go to the Settings ⚙ and look for the Chart of Accounts.
• Now here you need to find and double-click on the accurate credit card account.
• Click on the Payee field and select the credit card company under the blank line at the bottom of the register.
• Insert the amount under the Charge column.
• Click on the Account drop-down and select the expense account that you have to use for tracking annual, finance and all bank service charges. 
• Click on Save.

Hope, above discussed steps, helps you to set up, use, and pay credit card account in QuickBooks Desktop. But in case if you are getting any kind of hassle or issue when performing the given steps, then feel free to call our Intuit Certified Experts and get quick solutions for every Query. We will try to solve your query as soon as possible we can. WiZXpert gives you 24*7 support and assistance from the customers. You can call us at any point in time. We are available to you.