Introduction
Recording credit card processing fees in QuickBooks Online is an essential task for businesses that accept credit card payments. It allows you to accurately track your expenses and reconcile your accounts. In this article, we will dive deeper into the process of recording credit card processing fees in QuickBooks Online, providing step-by-step instructions to help you streamline your financial management.
Step 1: Set up an expense account
Before you can record credit card processing fees, you need to set up an expense account in QuickBooks Online. To do this, follow these steps:
1. Log in to your QuickBooks Online account.
2. Go to the “Chart of Accounts” by clicking on the “Accounting” tab in the left-hand menu.
3. Click on the “New” button to create a new account.
4. Select “Expense” as the account type.
5. Fill in the necessary details, such as the account name (e.g., “Credit Card Processing Fees”) and the appropriate tax settings.
6. Click on “Save and Close” to create the new expense account.
Step 2: Record credit card processing fees
Once you have set up the expense account, you can start recording your credit card processing fees. Here’s how:
1. Go to the “Banking” tab in the left-hand menu and select “Banking” from the drop-down menu.
2. Locate the bank account where you receive your credit card deposits and click on it.
3. Find the transaction that represents the credit card processing fees.
4. Click on the transaction to open the details.
5. In the “Category” column, select the expense account you created for credit card processing fees.
6. Enter the amount of the fee in the “Amount” column.
7. Review the other details of the transaction, such as the date and the payee.
8. Click on “Save” to record the credit card processing fee.
Step 3: Reconcile your accounts
Reconciling your accounts is an important step to ensure that your records match the transactions in your bank statements. To reconcile your accounts in QuickBooks Online:
1. Go to the “Accounting” tab in the left-hand menu and select “Reconcile” from the drop-down menu.
2. Choose the bank account you want to reconcile.
3. Enter the ending balance and the statement date from your bank statement.
4. QuickBooks Online will display a list of transactions that have cleared your bank account.
5. Check the transactions against your bank statement and mark them as cleared in QuickBooks Online.
6. If you come across a credit card processing fee that hasn’t been recorded, click on the “+” icon to add it as a new transaction.
7. Select the appropriate expense account and enter the amount of the fee.
8. Continue reconciling the remaining transactions until the difference is zero.
Conclusion
Recording credit card processing fees in QuickBooks Online is a straightforward process that involves setting up an expense account, recording the fees, and reconciling your accounts. By following these steps, you can ensure accurate financial records and better track your expenses. Remember to regularly reconcile your accounts to maintain the integrity of your financial data.
References
– QuickBooks Online: https://quickbooks.intuit.com/online/
– QuickBooks Help: https://quickbooks.intuit.com/learn-support/
