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Credit Card Questions

Here are some fast answers to questions recently asked through the Fathom site.

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Show/Hide AnswerHow do you split checks for credit card payments?

The preferred method is to use the credit card feature in QuickBooks and then splitting checks is not necessary. This allows you to record the exact date of the purchase and to keep track of the vendors for all purchases. You will be able to run complete reports of your expenses.

Show/Hide AnswerHow should I name credit card accounts?

You should have a separate account for each credit card statement. If you have many credit card accounts, it is helpful to name them with the last four digits of the card. For example, 4567Visa or 1278Mastercard. This makes it easy to see that you are entering the charges to the right account as most credit card receipts show the last four digits of the card.

Show/Hide AnswerCan I make credit card accounts inactive in QuickBooks?

Yes, just go to Lists, Chart of Accounts. Highlight the credit card account, then click Accounts at the bottom of the list window and choose Make Inactive.

Before making a credit card account inactive, you should reconcile the account to be certain that all charges and payments are entered.

If you later wish to make the credit card account active again, go to Lists, Chart of Accounts and click the box at the bottom of the list window to show all accounts. This box may be labeled Show Inactive Accounts or Show All Accounts. There will be a check mark next to the inactive credit card account. Just click on this check mark and it will disappear and the account will be active again.

Show/Hide AnswerWhat should I do when the credit card company assigns a new credit card number?

You can either start a new account or continue using the old account.

If you continue using the old account, it is best to rename it if you use the number as part of the name. You can keep the old number as part of the name until all the charges under the old number have been entered.
To start a new account, make a single entry at the bottom of the register to move the balance from the old account to the new account. This is best done at statement reconciliation time. All the charges for one month can be left on the old account, and you can start with the next month on the new account.

 

 

Advice and tips provided on the Fathom Graphics website are not a substitute for advice from your CPA, tax preparer or attorney. We are not CPAs or attorneys and do not provide legal or tax advice.