Adriane R. asked 3 years ago
How can I handle multiple credit card accounts and have them all reconcile together in QuickBooks?
Your Answer
How can I handle multiple credit card accounts and have them all reconcile together in QuickBooks
Adriane R. asked 3 years ago
In QuickBooks, you will set up the chart of accounts for credit cards like this:
Create main parent account. This account is not connected to the bank credit card account. And then, create sub-accounts. Normally, if you’ve (like American Express or Chase) you will also need one account for recording payments and fees. So, if your Chart of Accounts, accounts setup will look like this:
Credit Card Company (example American Express):
Sub-account # 1 for payment
Sub-account # 2 for charges (business card 1)
Sub-account # 3 for charges (business card 2)
All three accounts are connected and each will download its transactions. Whenever you make a payment from your bank account to your credit card company, it will show up on card #1. And purchases will show up on card #2, #3 and so on.
When you reconcile the credit card account, you will reconcile the parent account, not the sub-accounts in QuickBooks. You will then write a Journal Entry to reclassify the payment and charges. From above subaccounts, for example, JE will look like this:
Credit = subaccount # 1
Debit = subaccount # 2
Debit = subaccount # 3
If you’re making full payment for that credit card account, all the sub-accounts in QuickBooks should show zero balance as of that date on the credit card accounts.
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