How To Reconcile Credit Card Accounts in QuickBooks Online

If you aren’t a QuickBooks Desktop user yet, you can choose from a Pro, Premier, Enterprise, or Accountant package. We compare QuickBooks Desktop products to help you decide which one is right for you. If you decide to purchase Pro, one of our best small business accounting software, you will get a 33% discount on your first year. I wanted to see how everything about fixing your credit card reconciliation. QuickBooks won’t create a bill so your credit card balance isn’t affected. After you click Reconcile Now, a pop-up screen will appear asking whether you want to write a check for payment now or enter a bill to pay later.

How To Record Credit Card Payments In Quickbooks Online

1. Let’s dive into the step-by-step process of reconciling your credit cards in QuickBooks Online.
2. If you see a transaction in QuickBooks that isn’t on your credit card statement, don’t delete it.
3. In our sample credit card statement, you’ll notice that the transaction for Michael Kretchmar for the amount of $300 isn’t recorded in QuickBooks.

It needs to match the balance of your real-life bank account for the day you decided to start tracking transactions in QuickBooks. With the reconciliation results verified, you have successfully completed the process of reconciling your credit cards in QuickBooks Online. Let’s dive into the step-by-step process of reconciling your credit cards in QuickBooks Online.

Once added, mark the transaction as cleared by clicking the radial button in the right-most column. You need to investigate any transaction in QuickBooks that isn’t on your bank statement. While the most likely cause is an error in your QuickBooks accounting, don’t delete the transaction because it may affect other accounts or periods.

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If it isn’t, then you can head to our guide on how to process bank reconciliation in QuickBooks Online, which covers some troubleshooting tips to help you locate discrepancies. When you have your bank statement in hand, you’ll compare each transaction with the ones entered into QuickBooks. If everything matches, you know your accounts are balanced and accurate.

You should enter a bill because doing so moves a portion of your credit card liability to a current accounts payable (A/P). The advantage is that your credit card payment and due date now appear with your other A/P, so you have a reminder to pay the bill before it becomes overdue. When your reconciliation is complete, click the green Finish now button in the upper-right corner of the screen. Since all adjusting entry for bad debts expense of your transaction info comes directly from your bank, reconciling should be a breeze. Yes, as the statement serves as a reference to compare with the transactions in QuickBooks.

You can see that the difference is zero, which means that the statement ending balance and cleared balance also matches. By diligently following these steps, you can reduce the risk of errors, identify discrepancies, and maintain a clear and accurate picture of your company’s financial health. Regularly reconciling your credit card accounts will also help you identify any potential issues with your finances, enabling you to take the necessary steps to address them swiftly.

All you need to do is to review, categorize, and approve them from the For Review section. Mark Calatrava is an accounting expert for Fit Small Business. As a QuickBooks ProAdvisor, Mark has extensive knowledge of QuickBooks products, allowing him to create valuable content that educates businesses on maximizing the benefits of the software. When tracing from QuickBooks to your statement, you placed a mark next to each transaction on your statement that was shown in QuickBooks. Now, look for any transactions on your statement that don’t have a mark. If unmarked transactions are legitimate, they need to be added to QuickBooks.

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Good morning and thank you for the quick response, I have been using QB desktop for 20+ years and QBO has got me confused. The CC charges are listed in the bank transactions however they do not appear in the reconciliation when I start the reconciliation. Thank you for choosing QuickBooks Online (QBO) as your accounting tool, Rocco.

Ensure that all the details—including the dates, amounts, and descriptions—match your credit card statement. QuickBooks will display a message to confirm the reconciliation is complete and to ask if you want to make a payment towards this credit card balance. Feel free to let me know if you need further assistance with reconciling your credit card transactions. Once you connect your account, you don’t need to enter each transaction manually. Your bank entries will be downloaded to QuickBooks automatically.