How To Categorize Credit Card Payments in QuickBooks?

Last Updated on by Editor Team

When you use QuickBooks for business accounting management then, you will find the best option to manage your bank transaction directly from QuickBooks. On it, you can easily add your credit card details and it will be helpful to make payments and business transactions. Now, you do not need to use any separate tools to make payment for your business transaction because with it you can add the credit card details in your accounting tool easily. Here you will also find the best option to make different categories for your credit card payment in QuickBooks. If you want to know how to categorize credit card payments in QuickBooks, then read this complete post, by reading this post you will understand how to categorize and you can easily categorize.

Learn How To Categorize Credit Card Payments in QuickBooks

If you want to use QuickBooks in your business transaction then, you need to categorize your credit card payment in your QuickBooks. To categorize your credit card payment in QuickBooks. You need to go to the option of a chart account. Then you need to set up a credit card amount and choose credit card type.

Different Ways to Categorize Credit Card Payment in QuickBooks

Quickbooks provide you to categorize credit card payments in multiple ways where you can keep track of expenses and well maintained your financial reports. In this blog we will show how, Let’s have a look,

Write a check

When you receive payment through check then, you can write to check to record a credit card payment.

  • Go to the plus sign (+) icon new
  • Then, Select check
  • In the payee field, choose the vendor name for credit card payments
  • Click on the bank account and choose the bank account from which bank payment will be made.
  • Enter mailing address and select a payment date
  • Then, enter the check number if it is paid electronically and type the EFT.
  • Uncheck print it later if the check has already been issued.
  • Enter the category details and amount
  • Enter the description of amount
  • Enter notes under memo
  • Now, click on the save and close the tab.

Create a Transfer

  • Select plus icon (+) new
  • Then select transfer
  • From the transfer from, go to the drop down menu, and select the bank account credit card was paid from.
  • Go to  the transfer funds and choose  drop down option and select the credit card that the payment went to
  • In the transfer, Enter the amount of the payment
  • Then, edit the date
  • Enter notes under memo
  • Now, click on the save and close the tab.

Make the payment after reconciling your credit card

Step 1: Reconcile From the statement ae your credit card transactions

  • Go to the setting and select the reconcile
  • If it is your first time then, select the Get started and let’s do it
  • Choose credit card amount
  • Now, enter the missing transaction from the account and adjust any wrong transactions.
  • If any
  • If the difference come to zero then select to start reconciling
  • Select the checkbox and go to the transaction and match the transaction details on your statement to mark it as cleared in the reconciling.
  • Now completed and select done

Step 2: Pay the credit card Transactions

  • Pay all the bill now: Pay full transaction
  • Enter bill to pay later: Move the balance in the credit card account. So you can pay it later.
  • Done: If you don’t record credit card payment when reconciling

Download Banking Use

If you want to pay the credit card expense then, you can record the payment by transferring the records.

Transfer the payment

  • Go to the banking option and select banking
  • Select the account you need to transfer the payment from
  • Choose the transaction then, select the record transfer radio button
  • Now you need to choose any transfer account, go to the drop down menu and select the account which you will send the transaction to.
  • Choose the record transfer

Match the transaction

Once transfer has done then, you need to match with new account

  • Go to the recognized tab and make the transaction
  • Under the action column, select match

We have mentioned above How to categorize credit card payments in QuickBooks. We hope this blog will be helpful in recognized credit card payment in QuickBooks. If you still unable to categorize credit card payment, then you can hire Quickbooks ProAdvisor.

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