If you use QuickBooks and credit cards to manage your business finances take note. There are a few steps that if skipped can cause major bumps in the road of your finances. If you want your QuickBooks accounting to be right on the money, it’s important to be sure you are handling credit card transactions carefully.
Small business owners who have business credit cards have to record in their QuickBooks the actual individual charges made to their credit card. It is not enough to just record the payment. But why not, you ask? The reason is that each individual credit card charge has to be classified to one of your expense accounts to show up correctly on your Profit & Loss statement.
Recording the individual charges is also necessary for your tax return to be prepared correctly. Many times the credit card payment is only recorded in QuickBooks as a lump sum paying off the credit card, but that leaves out a very important step in recording the company’s transactions correctly. For a company’s taxes to reflect all the expenses correctly, all credit card charges must be recorded individually and classified to the appropriate expense account in QuickBooks.
Texas QuickBooks Help is designed to work with you one on one to ensure your business finances are in order. No one wants to be surprised at tax time and having an expert look over your files is the best way to be sure that all is well in your business finance world.
