Tips & Tricks for Quick Books

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Recording Credit Card Purchases in QuickBooks

This is one the most common mistakes/problems we see from clients. When you use a credit card to make business purchases, are you taking your monthly statement and entering in ALL of your expenses each month? Probably not if you don't use the credit card or enter bills features within QuickBooks.

When you pay your credit card company, are you making a partial payment? Do you simply “Write a Check” in QuickBooks for this partial payment? Where are you expensing the check to if it's only a partial payment? How are you keeping track of your true expenses and credit card balance?

The following step-by-step instructions (PDF file) will have you entering your monthly credit card purchases the right way. Don't lose expenses! Even if you are on a cash basis for tax reporting, the IRS allows credit card purchases to be taken as an expense when charged, whether you've paid your credit card company or not. And what about the interest charges on your credit card(s)? Are you entering these into QuickBooks?