You may choose to use a company Credit card for paying your business expenses. In this article we’ll explain how to record your transactions and payments in inniAccounts.
Maintaining Credit card records and recording payments
This is a 3 step process. You will need to:
- Record the Credit card transactions from your statement in the inniAccounts bookkeeping area.
- Create a transaction to represent the paying of the Credit card bill from your current account.
- Update your Credit card account to show the payment being made.
Don’t forget, if you use a Credit card you must ensure that the Credit card account, plus any others, are updated frequently in inniAccounts to ensure your LiveCash is up to date.
Step 1: Record your Credit card transactions in inniAccounts
In the Bookkeeping area select the Credit card Account. You can now enter your transaction as described in the Bookkeeping guide. The more frequently you do this, the more accurate your LiveCash and accounts will be.
You must however ensure that when you receive your Credit card statement your transactions are up to date in inniAccounts and the balance shown in inniAccounts matches exactly the balance shown on your statement. In the example below, the transactions have been entered, confirmed and the overall balance shown in inniAccounts matches the Credit card statement.
With all the transactions entered, confirmed and the balances matching, you can now record the payment to the Credit card company.
Step 2: Create a transaction to show the Credit card bill payment
This step will create two transactions in inniAccounts, one to represent the payment of the Credit card bill from your current account, and a second to show the Credit card balance being cleared or reduced by the paid amount.
Select your Business Current Account (or the account that the Credit card bill payment is being made from). Select the Enter new transaction button followed by the Transfer to another account option.
In the area that appears enter the details of the payment being made to the Credit card company. In this example it shows the balance of the Credit card being paid in full.
Don’t forget to mark the transaction as matched if the payment has been made and it shows on your bank statement.
When you click save you will see a transaction in your current account that represents the payment of the Credit card bill.
Step 3: Matching / reconciling the Credit card balance
Once you have created a transaction for the payment of the Credit card, a transaction will automatically be created on your Credit card account.
If you switch to the view of your Credit card account, you will see an ‘unmatched’ entry for the Credit card bill payment. You now need to click on the transaction for the bill payment, press the Edit button and mark it as matched. This will then update your Credit card balance. In this example the bill has been paid in full therefore the balance is zero.
Following this procedure will ensure your records are up to date.