馃攳
How to enter Credit Card Charges, Reconcile and apply Partial Payments in QuickBooks - YouTube
Channel: Candus Kampfer
[0]
hey it's Candace and in today's
[1]
QuickBooks tips and tricks we are going
[3]
to talk about credit cards so this is a
[5]
request per Mary of how to really
[8]
understand what's happening behind the
[10]
scenes within your credit cards so I'm
[12]
going to go over again how to enter
[14]
credit cards how to reconcile them once
[16]
you've reconciled them how do you apply
[18]
payments on a regular basis so that if
[21]
you're carrying a balance within on your
[23]
credit card that you're taking care of
[25]
quickbooks properly come look over my
[28]
shoulder and i will teach you how now
[29]
that I'm inside QuickBooks let me show
[31]
you what you do so the first thing I
[32]
want to show you is where do your credit
[34]
cards sit within QuickBooks where can
[37]
you go and see what's happening within
[39]
your credit card so the first step is to
[41]
go under list chart of accounts there's
[44]
also chart of accounts from the home
[45]
page but what you're going to do this is
[47]
a sample file that I use for my training
[49]
purposes here is a credit card that we
[52]
have added in the past so if you do not
[55]
have a credit card currently inside your
[57]
QuickBooks you would go under lists
[59]
chart of accounts here go down to the
[62]
bottom and click new pick credit card
[66]
continue and then you would just type in
[70]
your credit card what it's called so the
[73]
one I have right now is called capital
[74]
one and then I recommend if you have
[76]
more than one credit card putting the
[77]
last four digits of the card or the
[80]
account number on the title here if you
[83]
have a beginning balance you can enter
[85]
it here like an opening balance what I
[88]
recommend doing is go figure out what
[91]
time frame you want to enter so if we're
[93]
in this October right now at the end of
[96]
October and you want to enter all the
[97]
2015 go back and find your credit card
[100]
statement from the beginning of the year
[102]
so it would be the one that has all the
[105]
transactions as of January so if your
[107]
credit card is kind of mid year ends you
[110]
want to pick the one from December find
[112]
the beginning balance and put that in if
[114]
you need any help feel free to contact
[115]
me and I can help you with that as well
[118]
I can create another video on how to do
[119]
that but I figure this video is going to
[121]
be everything I can teach you
[123]
pretty much about credit cards as
[124]
quickly as possible so you can enter
[126]
create a credit card so you'll see -
[128]
here it says capital 1 2 3 4 5 it's
[132]
tight
[132]
credit-card which it just showed you and
[134]
the balance right now in here is 105 so
[138]
what this means is I'm not paying my
[140]
credit card off every month which is the
[143]
question I received from Mary so let's
[145]
look at that real quick I've created
[146]
previous video on how to do credit cards
[149]
this one we're just going into more
[151]
depth on so Mary said that she watched
[153]
it but she wanted to understand what to
[155]
do once it comes up to reconcile so
[157]
we're gonna cover that today
[158]
she also said she want to understand you
[161]
know what's happening accounting wise
[162]
and if you carry a balance or do partial
[164]
payments for a month a month how do you
[167]
check that and if you are doing
[169]
correction transactions how do you also
[172]
know that you are correcting it properly
[174]
I'm going to do my best to answer all
[176]
the questions today so what you're going
[179]
to do is you're going to have your
[180]
credit card the first thing I recommend
[182]
you do is you actually double-click on
[184]
it if you've been using it and look and
[186]
see what the transactions show you that
[188]
you've entered so in this example back
[191]
in August I entered a couple
[193]
transactions and then we did a
[196]
reconciliation we made a partial payment
[200]
of 150 which left a balance of 105 so
[203]
over here on this right column you'll
[204]
see balance it said 255 dollars
[207]
we made a payment of 150 which left us a
[209]
balance of 105 so today I'm going to
[212]
show you how do you I'm going to close
[214]
all these screens let's say that you're
[216]
ready to now enter credit card charges
[217]
so what you can do is you can either go
[219]
here under banking and click enter
[221]
credit cards or here under banking and
[224]
click enter credit card charges so
[228]
you're going to want to make sure that
[229]
the first thing you do is you select the
[230]
correct credit card if you have more
[232]
than one this is you would select this
[235]
little box this little circle if you
[236]
have charges and if you've returned
[239]
something and you have a credit you'd
[240]
actually select this and then QuickBooks
[242]
knows behind the scenes exactly what to
[244]
do with it
[245]
to the right you'll notice it says
[246]
ending balance 105 dollars that I just
[249]
showed you in the chart of accounts so
[251]
we're going to go in here and we're
[252]
going to do a charge you want to make
[255]
sure it's to a vendor let's say it's to
[259]
office depot we use today's date I'm
[261]
creating this video on the 28th of
[263]
October if you have a reference number
[266]
or receipt number you're welcome to use
[268]
that but it is not required it just
[271]
gives you more data then you would put
[273]
in the dollar amount that you're charged
[277]
to your credit card was four then you
[280]
could put a memo in if you want then you
[282]
go down here to expenses and you are
[285]
going to drop this down and you can
[286]
scroll down and find your office
[288]
supplies if you're at Office Depot I'm
[291]
guessing it's office supplies you're
[293]
buying you can break it down to multiple
[295]
expenses if you want you can put another
[297]
memo in if it goes for a specific job
[300]
I'm not going to cover that today and
[301]
then if you have classes which I've
[303]
discussed before in a previous video if
[306]
you want to know more about those feel
[307]
free to check that video out I'm just
[310]
going to select business for today and
[312]
then click Save and close if you have a
[314]
multiple credit card charges that you're
[317]
going to be entering you would actually
[318]
click Save and new I'm going to click
[321]
Save and close and that's as easy it is
[324]
as it is to enter your credit card
[326]
charges so what you would do is when you
[328]
get your statement you go in you grab
[331]
your statement and you look at every
[332]
transaction then you enter them into
[333]
QuickBooks when you're done the next
[336]
step is to click reconcile so we're
[339]
actually going to click reconcile we are
[343]
going to drop this down and make sure we
[344]
pick our credit card when I get my
[346]
calculator out so that I make sure I do
[348]
this right it's 105 dollars plus I just
[351]
did a twelve dollar transactions it's
[354]
going to be 117 now where you're going
[359]
to get this balance is off your credit
[361]
card statement so you're going to look
[362]
at your credit card statement where it
[364]
says ending balance so you have a
[365]
beginning balance that should match this
[367]
and then you'll have an ending balance
[369]
and that should match this actually
[371]
going to adjust this out to just say
[373]
October 31st and if you've gotten you
[377]
have a credit card finance charge you
[380]
can put that in here which is like
[381]
interest the date that they charged it
[383]
for you normally you do it every month
[387]
so this would be the previous month then
[388]
you would do September but because I'm
[390]
showing this example in October I'm
[391]
going to go ahead and go out to October
[393]
so make sure you grab your bank state or
[395]
your credit card statement you use your
[397]
ending credit card date they should be
[399]
the fall
[400]
month make sure this is exactly right so
[403]
if your credit card ends on like the
[404]
17th of the month
[405]
choose the 17th whatever date it says on
[408]
your statement
[409]
make sure your beginning balance is
[410]
correct make sure ending balance is
[412]
correct any finance charges the date
[414]
you'll go to interest expense finance
[416]
charge whatever you have in your
[418]
QuickBooks if you use classes it will
[420]
show up otherwise that won't be there
[421]
you're going to click continue and your
[425]
credit cards are going to come up so
[427]
what you're going to do is on the left
[428]
side it shows all the charges and on the
[432]
right side it shows all the credits or
[434]
payments if you have not been
[436]
reconciling your credit card you'll see
[438]
this little box up here where it says
[439]
hide transactions you're going to want
[441]
to check that and then anything after
[444]
the period date that you picked for the
[445]
statement will disappear so you have you
[448]
like years and months in here
[449]
go back fix it do it right credit cards
[453]
often get messed up because people don't
[455]
understand how to enter them they don't
[456]
go in here and enter each individual
[460]
under your credit cards they don't enter
[462]
each individual charge they try to do
[464]
lump sum and then they get messed up so
[467]
do each individual charge and then
[469]
reconcile it and don't move on until it
[472]
balances till it's matches to the penny
[474]
so you're going to grab your statement
[476]
and you're going to go okay that is a
[478]
charge that matches that matches oh
[480]
there's my payment perfect and you'll
[483]
notice over here to the right you have
[485]
your ending balance your cleared balance
[488]
and the difference is zero it has to be
[490]
zero to move on if it's not zero there's
[492]
a problem go back and fix it figure it
[494]
out if it does if it says it doesn't
[498]
match there's a difference yet you look
[500]
to the left and your beginning balance
[502]
is correct and your charges seem correct
[504]
or you and it still doesn't seem right
[507]
go back and click modify and chain and
[510]
check and make sure your ending balance
[511]
is correct because every now and then
[512]
somebody will do a typo on their ending
[515]
balance and everything won't match and
[516]
they can't figure out why okay so that's
[519]
what you're going to do you're going to
[521]
make sure it says zero then you're going
[523]
to click reconcile if you're that in the
[525]
middle of a reconciliation and something
[528]
doesn't match or you have to leave
[530]
you can actually click leave and then
[532]
come back and do it again
[533]
later and finish it once it's properly
[536]
done everything balances it says zero
[538]
here please please promise me you only
[540]
click if it says 0 click reconcile now
[545]
this little part comes up and this is
[548]
where Mary's question is because my last
[549]
video ended here what you're going to do
[552]
is it says that outstanding balance is
[555]
117 dollars or in other words your
[558]
balance you owed 117 do you want to
[560]
write a check for it right now
[562]
or do you want to enter a bill a payment
[565]
later most people that I work with and I
[568]
personally do this I reconcile my credit
[570]
card once I get my statement in but
[573]
that's not always the same timeframe
[574]
that I'm paying it so if it is you can
[578]
click write a payment or you can I don't
[581]
recommend using inter bills does what
[583]
inner bills does is it puts it as
[584]
accounts payable but you already have
[586]
entered those charges so they're already
[588]
going to show up on your profit and loss
[589]
you don't really want to use this inner
[592]
bills unless you're wanting accounts
[593]
payable I don't recommend that for most
[595]
businesses it just will confuse you so
[598]
don't do it even though those are the
[601]
only two options that they give you
[603]
don't if you're not going to pay it
[605]
right now what I want you to do is click
[607]
cancel and you might be like oh my
[610]
goodness I didn't even know that was an
[611]
option it is that's what I'm here to
[612]
show you then the next step is you can
[616]
print a piece of paper to attach it to
[617]
your statement if you want I typically
[619]
recommend just doing summary and
[621]
clicking print and that's all you have
[624]
to do I'm going to click display let's
[626]
see if it'll work sometimes I have a
[628]
little glitch with my QuickBooks hope it
[629]
worked ok perfect so this is what I'd
[631]
recommend you print it has your
[633]
beginning balance your charges your
[635]
payments and your ending balance print
[637]
that I'm just going to close it for
[638]
today
[639]
attach it file it away now the next step
[643]
a few weeks later whenever it is maybe
[646]
even you've already made all the
[648]
payments because hey let's I'm just like
[650]
you guys I get behind on my bookkeeping
[652]
so let's say you've already been making
[654]
payments and you know you're catching up
[657]
it's October and you're catching up from
[659]
January what you would do next is you'd
[662]
want to make sure all your payments are
[664]
put in and the way you put those in is
[665]
you would
[667]
go here to write checks or check
[670]
register I don't care which one you use
[671]
I'm going to show you write checks today
[673]
what you do is you go in you select the
[676]
bank account that you're paying it with
[678]
if you're paying it online you can
[680]
actually just type in online you can
[683]
type in EFT you can type in your check
[686]
number whatever it is however you want
[689]
to say that you paid it the date that
[691]
you paid it so let's say I'm going to
[694]
put online I'm going to say I'm going to
[696]
pay this January or I not do anyway
[699]
November 5th of this year I'm going to
[703]
pay it too ok so this is important when
[706]
you're in the chart of accounts and
[707]
you're creating your credit card you'll
[709]
notice you have a credit card here
[711]
that's your chart of accounts when
[713]
you're in and you go to pay it you have
[715]
to add it again and it's just going to
[716]
be say Capital One and they're a vendor
[719]
so if it's not already in here I'll act
[722]
like I have to retype it and I'll type
[724]
it slightly different you're going to
[725]
hit quick add vendor and you're going to
[728]
click OK so if you're if you're brand
[731]
new and you're paying your credit card
[732]
for the first time your your credit card
[735]
is going to be a vendor and that's going
[739]
to show your payments so let's say we
[741]
owe 117 dollars let's just say we're
[744]
only going to pay $100 a month probably
[746]
you just pay it off but I'm going to
[749]
show you that now one way you could do
[750]
it is do your breakdown but I'm not
[752]
teaching you that today because really
[754]
mess is most people up I work with
[756]
clients one-on-one and and if you ever
[758]
want to work with me feel free to
[760]
contact me I do these YouTube videos
[762]
because honestly I just enjoy teaching
[764]
but I've been doing it for eight years
[766]
so I work with clients one-on-one as
[767]
well so click on Capital One so the
[771]
vendors who your pain capital one is the
[774]
credit card just to be clear and then
[778]
the amount we're going to pay a hundred
[780]
dollars and I'm going to write this off
[783]
to business so what I'm saying is I
[785]
entered my charges I've reconciled it so
[788]
I know everything's done right then I'm
[791]
now going to make a payment to my credit
[792]
card and it's going to be a hundred
[794]
dollars down the road after I've
[796]
reconciled they're two different things
[798]
okay
[800]
going to pick the vendor the credit card
[802]
to your pain and you're going to click
[804]
save and close now that's going to show
[807]
up here in your register under your bank
[809]
account there's your payment the what
[812]
the blue line represents is that I'm
[813]
pain in the future anything above the
[816]
blue line is past anything below the
[818]
blue line is in the future because today
[820]
is October 28th just in case you're
[823]
curious so that just tells you I pay
[825]
Capital One and it and the account that
[827]
I'm picking is my capital one so now I'm
[830]
going to go under list chart of accounts
[831]
and I'm going to show you what's
[833]
happened so now if I go back into the
[836]
chart of accounts right here list chart
[837]
of accounts you'll see my capital one
[839]
and now it says I owe 17 dollars so if
[842]
you double click on that it'll open it
[844]
up and you can see what's happening so
[846]
if you want to know when you're going in
[847]
part of her question was I'll go back to
[849]
the YouTube you know what's happening
[851]
behind the scenes and what happens when
[854]
you do partial payment I think I covered
[856]
that pretty clearly and how do you check
[858]
your bat old transaction so what you're
[860]
going to do you're going to go in here
[862]
you're gonna look and you're going to
[863]
see okay I said when I entered this
[865]
particular credit card charge just
[867]
double click on it I said I paid it to
[869]
Home Depot and the expense category
[871]
that's what you want here you don't want
[873]
to select your credit card again you
[874]
want the expense up here is going to the
[876]
credit card here is where the expenses
[879]
if you hit control Y it's just a little
[881]
shortcut it'll actually show you also
[884]
what's happening in a little transaction
[886]
Journal what's going against your
[889]
expense and it's going against your
[891]
credit card so that's what's happening
[893]
behind the scenes accounting wise that's
[895]
what your question was and then when you
[897]
go to pay it you pay in capital one but
[899]
it's going towards your bank is what
[901]
where it's coming from
[902]
this is the where it's going to and this
[905]
words coming from and you'll notice
[907]
charges and payments and now your
[909]
balance is 17 dollars so QuickBooks will
[912]
actually keep track of your balance as
[913]
you go you just enter all your charges
[915]
enter all your finance charges reconcile
[918]
it and then make your payments as you go
[920]
along and make sure you're coding in
[922]
your check right here at a credit card
[925]
and you will be good to go so I hope
[927]
that answered all your questions if this
[929]
tip has benefited you and you know
[931]
somebody else who could benefit from it
[933]
please share it and if you enjoy my
[936]
videos don't forget to subscribe and
[938]
like this video and as I said I have a
[941]
lot more videos on here on my YouTube
[944]
and I put them on my blog on my website
[946]
if you would like to work with me or
[949]
want some help on your specific business
[951]
with QuickBooks feel free to contact me
[954]
can let you know what that looks like
[955]
have an amazing day ooo I forgot one
[958]
thing I love your questions it's the way
[960]
I know what you guys need to learn and
[962]
know because I do click books all the
[964]
time so if you have a question don't
[967]
hesitate to ask me you don't me to share
[969]
your name or anything about you I will
[972]
not share that information but I will
[974]
give you your answers have an amazing
[976]
day I'll talk to you guys again next
[977]
week bye
Most Recent Videos:
You can go back to the homepage right here: Homepage