If you decide to link credit card to QuickBooks, it can have some important benefits. This allows the user to keep credit card transactions in pre-defined categories, import the statements or reconcile them, and thus have important insights in to the expenditures of the business. The other benefits that are evident include – the elimination of data entry work that needs to be done manually, reduction of errors and so on.
To link credit card to QuickBooks is a simple process that conserves both time as well as energy of the user. Thus, in this article, we discuss the various steps which are required to link credit card to QuickBooks.
It may be noted at the outset that the process to link credit card to QuickBooks may differ according to the version of QuickBooks that is being used. At any rate, the main principles as well as steps would remain the same.
Understanding the process to link Credit Card to QuickBooks
Gather the required information:
Before they can link credit card to QuickBooks, the user needs to have certain details about the credit card account handy. Some of the details which are required as follows:
- Credit Card provider: The user needs to provide the name of the institution or the corporate body that is responsible for issuing the credit card.
- Banking Credentials: In case the user intends to do the linkage through online banking, they should duly have the login credentials for the banking account that is connected to the same credit card. This information is required to create a secure connection between QuickBooks and the concerned financial institution.
- Credit Card Statement: Having a credit card statement is beneficial from the point of view of doing reconciliations, and providing accurate financial records.
- Credit card account number: The correct credit card account number will be required in order to make some routine entries, as well as avoiding any issues in setting up.
- All information related to the credit card should be kept secure, in order to prevent breach of security.
Setup of new account in QuickBooks:
Follow the given steps in order to create a new account, before you can link credit card to QuickBooks:
Open the specific QuickBooks version that you are using on your computer. Alternatively, you may access it through its online version.
Once you have opened QuickBooks, you need to open the “Company” menu, and then press on “Chart of Accounts”. This is where all the financial accounts are managed.
Under the Chart of Accounts window that opens up, press on the “New” button in order to create a new account.
The options that open up will ask for the type of account. You need to select “credit Card”. This would ensure that all the transactions are categorized in a proper manner.
Following this, the user needs to enter all the relevant information for the credit card account, and then press on “Save and Close”.
By virtue of these steps, a separate account is created for the credit card. This will allow the management of the transactions without getting mixed with other financial transactions.
Steps to link credit card to QuickBooks
After the gathering of the details together, as well as establishment of the new account, finally, you can proceed to link credit card to QuickBooks. Follow the steps as mentioned below:
Go to the “Banking” menu, and press on “Online Banking”.
Press on the “Link Account” option in order to get the process to link accounts started.
The user then needs to input the name of the credit card provider, or the financial institution in the search bar. QuickBooks will accordingly display a list of corresponding options. The user needs to select the appropriate institution from the search results.
Finally, the user will have to follow the prompts as they appear on the screen in order to verify the link between QuickBooks and the credit card account.
After these steps have been taken care of, the user will be able to easily import transactions that have been recorded on the credit card in to the software.
With these steps, the credit card has thus been linked in to the QuickBooks account. Following this, let us also quickly discuss some other related processes between the credit card and QuickBooks. They are namely, the input of credit card transactions, the reconciliation of statements, as well as management of credit card expenses.
Input of credit card transactions
Accessing Banking Menu in QuickBooks involves going to the “Banking” section and selecting either “Bank Feeds” or “Online Banking.”
Next, you’ll need to download your credit card transactions from your financial institution. QuickBooks will fetch the most recent transactions and display them in a list.
After downloading, it’s important to categorize these transactions appropriately. QuickBooks provides predefined categories like “Advertising,” “Office Supplies,” and “Travel” to help you accurately classify your expenses. Match each transaction with the relevant category.
Always double-check the transaction details, including the date, vendor name, and transaction amount, for accuracy. This ensures that the information aligns with your credit card statement for reconciliation purposes.
In case a transaction needs to be divided among multiple expense categories, you can split it and assign different amounts to each category. This is particularly useful for transactions involving various items or expenses.
Don’t forget to save each transaction in QuickBooks after reviewing and categorizing them. You can do this by clicking on the “Save” or “Add” button.
Repeat this entire process for the remaining credit card transactions until all of them are accurately recorded in QuickBooks.
Reconciliation of credit card statements
Reconciliation can be done from the “Banking” menu, where the user needs to press on “Reconcile”. The user will need to enter all information pertaining to the statement, following which QuickBooks shall show a list of transactions that have taken place in the statement period. The user needs to keep verifying the transactions, by checking the boxes next to the transactions. In case of errors, the relevant procedures will need to be followed.
The process to link credit card to QuickBooks is an important step in making your financial management even more efficient. In this article, we have covered all the steps which are required to link credit card to QuickBooks account. Additionally, we have also discussed some other functionalities such as input of credit card transactions as well as reconciliation of statements. QuickBooks is an important tool that helps you to stay on top of all your financial instruments. You can maintain accurate records as well as get insights in to the current situation of your business.