QuickBooks5 min read
How to Record Credit Card Payments in QuickBooks
Learn why a credit card payment is usually a transfer or payment, not a new expense, and how mistakes can duplicate expenses in QuickBooks.
Short answer
A credit card payment is usually a payment or transfer from checking to the credit card account. The expense was recorded when the purchase was charged to the card.
Checklist
- Connect or enter the credit card charges.
- Categorize expenses when they are charged.
- Record the checking-to-card payment as a payment or transfer.
- Match the bank-feed payment instead of adding a new expense.
- Reconcile credit card accounts monthly.
Common mistakes
- Recording credit card payments as new expenses.
- Duplicating expenses by adding both charges and payments as expenses.
- Not reconciling the credit card account.
- Posting payments to the wrong credit card account.
Examples for service businesses
- A contractor buying materials on a card records the material expense from the card charge.
- A landscaper paying the card from checking records a payment, not fuel or supplies again.
- A service business with multiple cards should reconcile each card separately.
Why this mistake matters
If the purchase and the card payment are both recorded as expenses, expenses are overstated and profit can look lower than reality.
Get QuickBooks Help
Not sure if your credit card payments are recorded correctly? Sabillon Advisory can review your QuickBooks file.
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