How to Enter Credit Card Charges in QuickBooks Online?

QuickBooks Online allows you to record credit card charges using both traditional and manual methods to stay updated with your expenses and maintain accurate financial reports. A credit card gives you the option to borrow funds for purchases or for paying bills. You can set up your credit card account to track the charges and payments you’ve made.

Managing credit card charges in QuickBooks Online helps you to ensure every transaction is accurately recorded and categorized. Whether you’re manually entering charges, uploading receipts, or using automated tools, QuickBooks provides different ways to keep your finances organized and up-to-date.

Things to Do Before Entering Credit Card Charges in QuickBooks Online

Before entering credit card charges in QuickBooks Online, you’re recommended to follow some steps to streamline your cash flow and keep track of the expenses you’ve made.

Here’s a checklist you need to follow:

1. Ensure that all your credit card accounts are properly set up in QuickBooks Online.
2. If you’ve connected your credit card account to QuickBooks Online via bank feeds, check for any imported transactions.
3. Review and categorize imported charges before manually entering any transactions to avoid duplication.
4. Check that the opening balance for your credit card account is accurate and maintain proper reconciliation between QuickBooks and your credit card statement.
5. Keep all receipts or supporting documents handy for the credit card charges you’ll be entering.
6. Make sure you know the exact transaction date and posting date before entering charges. 
7. When entering charges, select the appropriate expense categories (e.g., supplies, travel, advertising) to track expenses correctly for tax and reporting purposes. 
8. Make sure the credit card charges haven’t already been recorded (through bank feeds, manual entry, or another method). Duplicate charges can throw off your account reconciliation and financial reports.
9. Stay updated with your credit card’s available balance and the credit limit to avoid missing due dates.
10. Reconcile your credit card accounts on a regular basis to ensure that all credit card charges are accurately reflected in your QuickBooks Online account and there are no missing or duplicated transactions. 

Steps to Enter Credit Card Charges in QuickBooks Online

Entering your credit card purchases into QuickBooks Online and then matching that transaction to the bank feed is the best method, at least from a bookkeeping standpoint. Bank feed allows your banking and credit card transactions to be reconciled and reported more accurately and efficiently.

The QuickBooks Online bank feed is a QuickBooks feature that connects your online business bank account securely to your accounting software. It syncs your banking transactions with your QuickBooks Online records, so you don’t have to input every check, charge, transfer, Expense, or deposit manually.

Traditionally, bookkeepers entered transactions into ledgers from source documents like receipts and then reconciled these ledgers to the bank or credit card statement every month. But now, using the bank feed feature, you can make all banking and merchant account transactions, whether you have cash deposits or withdrawals, online payments, credit or debit card charges, transfers, or loan payments.

When your bank data flows directly into your QuickBooks Online account, every transaction is instantly synced and sorted for you. As you add data and approve transactions, QuickBooks recommends categories for your expenses and gets smarter over time.

Record Credit Card Charges as an Expense

In QuickBooks Online, you can enter your credit card charges as Expenses. From there, you can choose a category to post the amount individually.

Let’s see how:

1. Click on the + New icon and then select Expense.
2. Navigate to the Payee field, and choose the vendor.
3. From the Payment Account drop-down menu, choose the credit card account you used to pay for the Expense.
4. Enter the date for the Expense under the Payment date section.
5. From the Payment method drop-down list, select how you paid for the Expense. 
6. Type the advance amount.
7. Fill out all the other necessary information.
8. Once done, press Save and Close.

Enter Charges Directly into the Credit Card Register

1. Hover over Accounting in the left side menu and then select Chart of Accounts.
2. Find your credit card account and click View Register.
3. Choose Add Expense (or similar, depending on your QuickBooks version).
4. Type the Date, Vendor/Payee, Amount, and Category.
5. Save the transaction to record it directly in the credit card register.

Connect your Credit Card for Bank Feeds

1. Navigate to the Banking or Transactions tab on the left.
2. Link your credit card account if not already connected. QuickBooks will download recent charges directly from the bank.
3. Review each transaction under the For Review tab, categorize it, and choose Add to record it in QuickBooks.
4. Set up bank rules for automatic categorization if there are recurring expenses.

Upload Receipts Using the QB Online Mobile App

1. Open the QuickBooks Online mobile app.
2. Head to Transactions, then click Receipt Snap.
3. Select the Receipt camera and take a picture of your receipt for a credit card purchase.
4. Click Use this photo and press Done. 
5. QuickBooks will create a draft transaction, which you can later review, categorize, and save.

Steps to Manually Enter Credit Card Charges in QuickBooks Online

QuickBooks Online offers the ability to manually enter transactions associated with a credit card. This will help you get the most accurate and up-to-the-minute financials. Bank feeds allow your credit cards to sync to QuickBooks Online, making transactions instantly viewable in the register. There’s a time lag between the actual credit card transaction and when the transaction shows as pending before it posts to your credit card statement.

If you need up-to-date financials due to end-of-period accounting reports, pending charges cannot be imported through QuickBooks Online bank feeds. Only an actual payment that has been processed via your credit card and appears on your statement will transfer to your bank feeds. To get the most accurate real-time view of your finances, you need to manually enter credit card charges in QuickBooks Online.

Here’s how:

1. Hit the Plus icon.
2. Now, choose Expense.
3. Select the credit card account from the Bank/Credit account drop-down menu.
4. Type the additional information about the transaction.
5. Press Save at the end. 

Bottom Line!

Entering credit card charges in QuickBooks Online is crucial for record keeping, which ensures accuracy and integrity in your bank transactions. It helps you to connect your bank or credit card accounts and keep track of your finances before printing financial statements at the end of the month, quarter, or year. 

Businesses can either manually enter or automate the process by importing transactions, which increases efficiency and reduces the risk of errors. Regularly reviewing and entering these credit card charges ensures your books stay up-to-date and ready for financial decisions or audits.

Disclaimer: The information outlined above for “How to Enter Credit Card Charges in QuickBooks Online?” is applicable to all supported versions, including QuickBooks Desktop Pro, Premier, Accountant, and Enterprise. It is designed to work with operating systems such as Windows 7, 10, and 11, as well as macOS.