Do you have a credit card account where the primary master card houses all the payments separate from the individual employee cards? Are you struggling to reconcile these accounts in QuickBooks Online?
In this video, I show how to transfer credit card balances from employee cards to the parent credit card account if you are not using the location tracking feature in QuickBooks Online.
To get started, download your credit card statement and open it on one screen. Then, log in to QuickBooks Online on another screen.
The first step is to transfer the balance for each employee's credit card to the parent credit card account using the QuickBooks Online transfer feature.
To do this, click the +New icon and select Transfer under the other column.
In this transfer window, choose the parent credit card account in the transfer funds from field. Choose the employee credit card account in the transfer funds to field.
Enter the transfer amount, which is the same as the employee card ending balance listed on your statement. Enter the date as the statement closing date.
Enter a memo that says, “Card # credit card for close date and balance transfer to parent credit card account.”
Add a copy of the statement as an attachment if needed. Review everything and click save and new to repeat the process to transfer the balances for all other employee credit card accounts.
Once done, click save and close.
Next, you will reconcile the individual employee credit card accounts using an ending balance of zero and the statement closing date.
To do this, click on accounting and select reconcile. You can also click on the gear icon and select reconcile.
In this reconciliation window, select the employee credit card account, add zero as the ending balance and enter the statement closing date as the ending date. Then click start reconciling.
Compare the transactions in the reconciliation window to the ones listed on your credit card statement and make the ones that cleared, including the closing statement balance amount we recorded as a transfer.
Review the account for duplicate transactions and resolve them if needed.
Once your difference is zero, click Finish to close the reconciliation window. Print your reconciliation report to PDF and store it in your cloud storage system.
Repeat the reconciliation process for other employee credit card accounts that you have.
The next step is to reconcile the parent credit card account using the same reconciliation process.
Open the reconciliation screen again, select the parent credit card account.
Enter the statement closing balance for the parent credit card account in the ending balance field. Enter the statement closing date in the ending date field. Click start reconciling.
Compare the transactions in the reconciliation window to those listed in your credit card statement and make the ones that cleared. Review the account for duplicate transactions and resolve them if needed.
Once your difference is zero, click Finish to close the reconciliation window.
Click done in the popup screen and go to the history by account to view your reconciliation report. Print your reconciliation report to PDF and store it in your cloud storage system.
Once all credit card accounts are reconciled, run a balance sheet report for the statement period. You will notice the employee accounts have zero balances, and the parent credit card account has the statement balance that you pay when your credit card payment is due.
That is how to reconcile primary parent credit card accounts and employee credit card accounts if your organization does not use the location tracking feature.
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Learn how to set up your credit card accounts in QuickBooks Online to track your expenses in real-time whether you have one credit card or multiple credit cards. Watch the video and follow the guide.