Accounting & Bookkeeping & Small Business Forum

[Guest]

I have a client who pays nearly all the bills for the business with a business credit card that earns him frequent flyer miles. How do I keep track of all the little receipts, and should I show the credit card charges as "splits" in Quick books? Any other suggestions also would help.

[Guest]

In the Banking Navigator there is an icon for entering credit card charges. I suggest you use it and show each charge individually. That way you'll be able reconcile the card, track it by date, have a more accurate timing charge, be able to research individual charges, and account for partial payments of charge card balances.

[Guest]

Just thought I'd throw my two cents in and offer more insight into this situation, as I have had this question brought up to me several times as an advisor.

Entering Credit Card Charges is fine if the bill is paid IN FULL every time. However, the circumstances change if the situation ever comes up where a partial payment is to be made, OR if the cc charge is made in a different period than when the expense is incurred (e.g. date of acquisition or invoice date).

One method of keeping track of partial payments via credit card is entering the bills as a BILL (charging the bill to the appropriate expense or asset account), then entering a credit card charge (as mentioned by Bryan) against the Accounts Payable account, using the name of the vendor in the "customer:job" field. This will create a credit for that vendor which can be applied in the Vendor - Pay Bills window. This way, the entire expense is recognized despite the fact that it may not be fully paid at that time. It may seem complicated, but it is quite a simple concept once you try it (if you ever need to.)