Video 29. Credit card transaction are very similar to bank transactions. Keeping records of the credit card transactions is the same. Using a credit card can be convenient and it can earn you points. Also, the there is more information about he supplier (vendor) on a credit card statement than a statement from the bank, in my experience.

You must have a separate account in the chart of accounts for each company credit card that you use when you charge business expenses, and each separate credit card account will record transactions of that credit card.

Keeping records of a credit card is exactly the same as keeping records of a bank account. The credit card company will give you a monthly credit card statement to show all of the transactions that you charged and paid during the month. You must enter each individual charge as a separate transaction. when you record them in the expense window. The company credit card is the payment account, and when you finish recording all your credit card transactions, you must reconcile the credit card account the same way that you would reconcile a bank account.

Not To Do

There are things that some people do with their credit card information that you should not do.

First, you cannot wait until the end of the month and then receive only the statement and record all the charges just from the statement.
You are the bookkeeper, and you must protect the records from false charges that the credit card company might put on the statement.
everyone in the company who charges a transaction on the company credit card, keep the slip and give the bookkeeper the slip, and the charges should be recorded from the slip and not the statement.
Secondly, You should also not record all credit card charges into one expense, like credit card expense.
Third, you should not pay the credit card bill from the checks window and list each charge at the bottom of the window. You will not have the correct dates that you paid for the services and products that you charged, and
you will not have the correct balance in the account and not know if you’re about to go over your credit limit.
The fourth thing that you should not do is use the enter bills, pay bills feature when entering the statement from the credit card.

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