The most common way people enter in their credit card bills is to wait for the bill to come in the mail and then enter it in as a bill in QuickBooks, posting it against multiple expense accounts. Although this is not wrong, there is an easier and more detailed way to do this. Here are the steps:
First, you want to create an account (Choose Credit Card as the type) in your Chart of Accounts for every business credit card that you have. If you have multiple cards, you may want to make a parent account called “Credit Card Payable” and then make a subaccount for each individual card.
Once you have created the proper accounts, now you have two ways to enter in the charge every time you use one of your credit cards. First, when you go into Pay Bills, you will have the option to choose “credit card” for the method and in the “Account” drop down, you can choose the actual card that you used for to pay that bill. Second, whenever you have a point of sale type purchase (Ex – go to staples and buy a stapler for $5.00 and use your credit card) in QuickBooks, you can go to Banking>Enter Credit Card Charges. Enter in the $5.00 charge making sure, again, to choose at the top the actual card you put the charge on.
Now as you use your credit cards and enter in the charges into QuickBooks, you will see all month long that the balances in the credit card accounts in your COA begin to grow. Once the Credit Card bill comes in the mail, the amount due on the bill should match the balance in the account in QB. You can perform a reconciliation on the particular credit card subaccount, just like you do with a bank account statement. Once you finish the Credit Card rec, QB will actually enter in the credit card bill for you and post it against the credit card account. By doing this, you reduce the balance in the credit card account and increase your Accounts Payable balance by the amount of the bill.
Doing things this way enables you to track the balance on each individual credit card that you have all month long as well as see the total credit card debt that you have in the Credit Card Payable parent account.