How to Categorize Credit Card Payments in QuickBooks Online QuickBooks Expert

How to categorize credit card payments in quickbooks

In the screenshot above, there are 25 transactions awaiting review in our Bank of America credit card account. You can initiate the process by choosing your credit card and clicking on the credit card you want to reconcile. Now select the date of the statement and give your finance charges and ending balance. Once you enter all details and match transactions, click on reconcile your account and save.

Start the transfer from Undeposited Funds by clicking on the + New button at the top of the left menu bar and then selecting Bank Deposit in the far-right column. This will open up the Bank Deposit screen, which prompts you to complete important fields. Instead, the accounts payable data entry staff undertakes the task of individually scrutinizing each statement, manually assigning charge codes to every line item, based on the type of expenditure. Alternatively, another approach is forwarding these statements to card users and requesting them to complete the necessary information, although this strategy can potentially delay payment processing.

Can I import credit card transactions into QuickBooks automatically?

To enter the individual detail of each transaction in QBO click the “+NEW” button and then Expense. For Payment Account, select the credit card account created in the above step. For Category select the expense account that pertains to the specific transaction (e.g., office supplies or meals). In QuickBooks Desktop products click Banking in the menu bar and then Enter Credit Card Charges. As you enter each transaction use the date of the transaction and not the statement ending date.

How to categorize credit card payments in quickbooks

If your credit card processor charges fees other than those subtracted directly from a deposit, record an expense by clicking on + New from the left menu bar and then selecting Expense in the Vendors column. To complete the expense form, you need to enter the required information, as seen below. Over the years I have seen many methods of recording credit card transactions. Some of the methods technically work, but they leave something out whether it is accurate dating of the transactions, detail of the individual transactions or the ability to reconcile the account to the statement. Using the method QuickBooks designed for credit cards addresses all of these shortcomings.


A payment that is made against a card balance is making payment against the credit card kind of liability account. Yes, and you can do so by connecting your bank or credit card account to the platform. To create a rule, you must specify the conditions and select what happens when the conditions are met. You may need to use the Split button If your transaction involves different expense categories. The ‘Split transaction’ screen allows you to allocate the amounts to the respective categories or accounts based on your needs.

  1. In a few seconds, you should see the same left-side menu bar illustrated in this tutorial.
  2. But first, you have to link your account to bank feeds in QuickBooks.
  3. After you import credit card transactions into QuickBooks Online, our best small business accounting software, you must tell the platform how to classify the transactions.
  4. You’ll learn how to match transactions to existing entries, add them as new transactions, or choose from multiple potential matches.
  5. You will not know how much you spent with each vendor or have an accurate expense total per month since most credit card statements span calendar months.

If the imported transaction is new and not yet recorded in QuickBooks, click on the transaction entry line, and QuickBooks Online brings up a screen where you can record the transaction based on its suggestions. For instance, in the screenshot below, QuickBooks suggests the transaction to be recorded under Uncategorized Income. However, you have the option to adjust it based on the transaction. Once the import is finished, you are directed to the Banking menu or Transactions menu where your imported transactions are displayed on the For Review tab. Either you download the transactions directly within QBO and edit the category to COGS or import and add them to the register with the correct account. Performing both processes at the same time can cause duplicates and incorrect balances.


Whether you’re a business owner or an individual, mastering this process contributes to better financial decision-making and long-term stability. By properly categorizing credit card transactions, you can better monitor your expenses. For instance, you can categorize transactions as office supplies or travel expenses—allowing you to track where your money is being spent.

QuickBooks presents how many potential matches it found under the Category or Match column. When QuickBooks detects that a transaction already exists in QuickBooks, you’ll see a Match button under the Action column. You’ll see the potential match found under the Category or Match column.

Click View or anywhere on the transaction line to review the potential matches. In some cases, QuickBooks may detect more than one potential match. This can occur when there are multiple transactions in your account that share similar details, such as the date, amount, and payee.

Categorizing Credit Card Payments

Managing your finances and keeping track of your expenses is essential for maintaining a healthy financial life. One common financial transaction that individuals and businesses engage in is record credit card payments. In this guide, we’ll walk you through the step-by-step process of recording a credit card payment. After that, you can easily record credit card payments in Quickbooks Online. After you import credit card transactions into QuickBooks Online, our best small business accounting software, you must tell the platform how to classify the transactions. Imported credit card transactions don’t transfer into your account register automatically.

I pay off the Work card in installments each month, I am no longer using it to purchase anything, just paying off the balance. I’m quite excited about this feature, it makes it so much easier to record a credit card payment without doubling it up. That was something that I used to see really often, it was a very common error. This is the newer bank feed format where you “confirm” the transaction. A well-written transaction report is something you will not have to dig much to know what is what.

Also, if you want to manually add bank transactions, you can use the WebConnect feature. You’ll need to download the data first from your bank’s website and import to QuickBooks Online. The Balance you owe gets increased by entering Expense charges that you used that card for, already. The credit card purchases are individually entered, for the date you used that card to buy something. $217.73, today, and let’s make this payment from that overdrawn checking account.

Recording Credit Card Transactions in QuickBooks: Many options – One best practice

If it was a check this gives you the option to put the check number in, if it’s just a bank transfer you’re done. Today we’re going to look at the new pay down credit card feature. If you wanted to know what features are available in all the different plans, there is a link below. If you’ve watched any of my videos you will know I often talk about duplicating transactions by entering things twice from the bank feed. Once you’re done with the transfer of the transaction, you need to match it with the new account.

Leave a Reply