If you’re using credit cards to purchase items or pay for bills in QuickBooks Desktop, then you need to know how to enter the charges correctly so that you have accurate financial statements. Today, we’ll teach you how to enter credit card charges in QuickBooks Desktop Pro and Premier. In this lesson, we will cover the normal method, but also give you a shortcut method to consider.
If you don’t have a QuickBooks Desktop account yet, you can choose from QuickBooks Desktop Pro, QuickBooks Desktop Premier, QuickBooks Enterprise, or QuickBooks Desktop Accountant. To help you decide which QuickBooks product is for you, check out our comparison of QuickBooks Desktop products.
When you subscribe to QuickBooks Desktop Pro, one of our best small business accounting software, you will get a 33% discount on your first year. You can visit the QuickBooks website to learn more about the available discounts on the other QuickBooks Desktop products.
Watch the video below and use the step-by-step instructions that follow. You can follow with your QuickBooks Desktop account to better understand each step.
Why Enter Credit Card Charges in QuickBooks Desktop
Recording credit card charges in QuickBooks Desktop helps you:
- Reconcile your credit card account easily
- Catch billing errors in your credit card account
- Take better control of your finances with a detailed analysis of your spending
- Make your life easier during tax time
Steps To Enter Credit Card Charges in QuickBooks Desktop
To enter a credit charge in QuickBooks Desktop, follow these two simple steps:
- Select Enter Credit Card Charges.
- Enter the credit card charge.
1. Select Enter Credit Card Charges
There are two ways to bring up the Enter Credit Card Charges screen. You can click on the Enter Credit Card Charges icon under the Banking menu on the lower right-hand side of the homepage, or tap on the Banking menu on the top of the screen, then select Enter Credit Card Charges from the drop-down menu:
2. Enter Credit Card Charges
After clicking on the Enter Credit Card Charges icon, the credit card charge screen will appear:
From the credit card charge screen, you will notice that there are two buttons:
- Purchase/Charge is used to record purchases.
- Refund/Credit is used to record refunds or credits from a credit card company.
Since we are recording a credit card charge, click on the Purchase/Charge button.
You will also notice that there are two tabs on the credit card charge screen:
- Use the Expenses tab to record a business expense directly to an account listed in your chart of accounts
- Select the Items tab if you purchased something that you’ve already set up as a Product or Service Item.
It’s important to use Product Items for any transaction dealing with inventory. You can learn more about Expenses vs Items from the QuickBooks help section.
Since we are recording a business expense, let’s fill in the Expenses tab:
You need to enter relevant information in the credit card charge screen, including:
- Credit Card: If you have multiple credit cards set up in QuickBooks Desktop, make sure to select the appropriate credit card for the charge you want to enter. If you only have one credit card, QuickBooks Desktop will select that credit card account automatically.
- Vendor: Choose the vendor associated with the credit card charge from the drop-down list. You may also create a new vendor on the fly.
- Date: Enter the date the credit card was charged.
- Ref. No: Assign a unique reference number to a transaction (optional).
- Amount. Enter the credit charge amount.
- Account: From the account drop-down list, choose the appropriate expense or asset account associated with the credit card charge.
- Amount: Enter the charge amount.
- Memo. Add a memo to help you remember the purpose of the credit card charge (optional).
- Customer Job: Assign the expense account to a customer (optional).
- Billable: Mark the expense account as billable if you wish to pass the cost through to your customer on a future invoice (optional).
- Class: Assign a class to your expense account (optional).
Review your entry and click Save & Close.
There you go—you have just entered a new credit card charge in QuickBooks Desktop. Now we’ll show you a shortcut method for entering credit card charges.
How To Enter Credit Card Charges Using the Shortcut Method
While the shortcut method can save you some time, it does have some drawbacks. It doesn’t allow you to record a credit charge as an item, only as an expense account. You can’t assign it to a customer job, mark it as billable, or assign it to a particular class. If you don’t need the extra fields and you only need to organize your business expenses for tax time, then you can use the shortcut method.
To enter a credit card charge in QuickBooks Desktop using the shortcut method, follow the steps below:
- Select Use Register.
- Enter credit card charge.
1. Select Use Register
Click on the Banking menu on top of the screen and select Use Register from the drop-down list.
Next, choose your credit card account from the drop-down list, and then click OK.
After clicking OK, the credit card register will appear. You will notice that the credit card charge we just entered is now in the register:
2. Enter Credit Card Charge
From here, you can record a new credit card charge instantly. Click on the bottom-most entry in the register, choose the appropriate account, and add other relevant information like amount and memo:
Click Record, and you’re done.
That’s it. Now you’ve figured out how to enter a credit card charge in QuickBooks Desktop using the normal and shortcut method. Again, be cautious when using the shortcut method. While it is faster, the information you can record in QuickBooks Desktop is limited.
If you are considering a switch to QuickBooks Online, be sure to check out our tutorial on how to convert QuickBooks Desktop to QuickBooks Online.