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Using Other Accounts in QuickBooks

Lecture Slides are screen-captured images of important points in the lecture. Students can download and print out these lecture slide images to do practice problems as well as take notes while watching the lecture.

  • Intro 0:00
  • Other Account Types in QuickBooks 0:36
  • Tracking Credit Card Transactions - Entering Credit Card Charges 0:58
  • Reconciling Credit Card Statement 3:52
    • Reconcile Credit Card
  • Marking Cleared Transactions 5:57
  • Paying a Credit Card Bill 8:11
    • Entering Bills
    • Writing a Check

Transcription: Using Other Accounts in QuickBooks

Hi, welcome back to educator.com. This the QuickBooks lessons on using other accounts in QuickBooks.0000

QuickBooks has other accounts associated with it. 0008

The one that we are going to go through in this lesson is utilizing and using credit cards.0011

Credit cards are a wonderful tool that we use in our business.0017

They help us manage and track our business expenses.0020

As we use those credit cards there is a nice little statement that comes in every month.0024

And it usually annual statement will give us a category of expenses that we have used.0028

So, we can utilize that for our tax preparation.0034

In other account types we have. There are of course the credit cards.0037

We have the tracking credit cards. We have assets.0043

We have liabilities accounts. We have multiple other types of accounts.0050

So, we are going to talk about specifically the credit cards today.0055

We are going to talk about now the entering and how to enter a credit card charges when we have those receipts.0059

Every time we utilize a credit card we should make sure that we have that receipt.0067

It is helpful to have those for the IRS as well as keeping track of your transactions.0071

So from our QuickBooks we have our home menu up.0077

The thing that I would like to do is show us how to enter in those credit cards.0081

So, from the banking menu we are going to choose from banking we will say enter credit card charges.0086

Click on that. It is going to open up a nice little window that looks very similar to the check writing window as well.0092

From here it is going to list a drop down menu for our credit card.0102

At this point in time this transaction.0106

Let us say we purchased fuel from a gas station and we used our Cal oil credit card.0109

So, I will choose that credit card to use.0115

We are going to go to the pit purchase from and that it is going to be Bayshore Cal oil service.0119

So, we type in Bayshore it auto fills it for us and we will hit tab.0125

We will assume that is the correct date.0130

That this transaction is on from our little receipt that we have from our purchase of fuel.0133

We will put in the amount of $30.0140

Because we are such big spenders with gasoline we only put in a gallon a gas. 0143

The next thing we are going to do is we are going to make sure that.0148

The expense category is properly filled out as fuel expense because this is the type of transaction we conducted.0151

I what you to, also notice of to the right here that.0159

If this were a recoupable expense that we can bill to our clients.0163

We can also choose from the customer job drop down menu and choose the particular job that this was for .0168

And we can have it ready to be rebilled to our client in which we will discuss in a later lesson.0175

But for this purpose we are not going to do that.0184

We are going to make sure that this is just a business office expense that we incurred ourselves.0187

It is not going to be rebilled back to anybody else.0193

So, here we make sure that it is all entered properly according to the receipt that we have.0196

And we will say save and close. That is how we enter credit card charges.0201

And from there we want to make sure that we can now reconcile it.0207

Throughout the month and week we will have all these receipts that we put together.0214

I always re-encourage you to enter things on a daily basis.0218

That way you are more familiar with QuickBooks and how it runs.0221

And in that way, you are up to date with entering your charges.0224

And you can keep track of your expenses in a more accurate way.0227

But the next step now that we have entered those credit cards.0232

We are going to talk about reconciling a credit card statement.0236

At the end of the month after we have utilized our credit cards we will get a statement just like a bank statement. 0242

When we get the statement in the mail we open it up.0247

And we always like to double check what kinds of transactions were happening.0250

A lot of times people will find fraud.0255

And you are never going to find that fraud on your credit card. 0257

Unless you open up and look at that credit card statement and double check with your receipts.0260

There is a lot of fraud going on out there and it is important to reconcile.0268

So another way to reconcile. We can say we go to the banking manual and say reconcile.0272

Or we can open up from our company manual we can go to chart of accounts.0278

Or from our list menu go to chart of accounts.0282

At this point we will just say company menu chart of accounts.0285

And we will go ahead and scroll down to our credit card Cal oil credit cards.0290

Since we have just been utilizing that credit card.0298

From the activities manual we can choose reconcile credit card.0301

When we choose that it automatically fills in the account as Cal oil credit card.0308

That, is the statement that we are using.0312

We will put in the closing date of say 12-15-2015.0315

Did not like that. I will try it again 12-15-2015. There we go.0327

If you put in the numbers correctly the ending balance for this purpose should be 412 and 62 cents.0332

For this purpose we do not have any finance charges that we are going to login at this point in time.0340

We will just assume it is free since we are paying it of in full and we will click on continue. 0345

It looks just like our bank reconciliation. It is the same module.0352

Here we are going to be looking at our credit card statement.0358

We will see the payments that we have and we will check down the first payment.0360

We have made a payment of $3000. We have made a payment of $135 etc.0364

So, we are putting all this down making sure that they are all reconcile.0373

We want to make sure that each statement that is on our credit card statement.0377

That we check each one of those off and we are checking it on our credit card statement.0382

It is clear that they match. We are matching those together.0389

Once we have them all matched down and all reconciled.0394

We then we will go ahead and see on the bottom right corner.0399

The most important item we are looking for is that difference.0406

Do we have a difference of cleared items? 0410

Our ending balance per our statement was $412 and 62 cents.0412

And the cleared items that we checked off here in our computer system.0416

Is the same amount we checked off for the bank and it does. It is correct.0421

It is zero. we say reconcile now. It gives an option now to write a check. 0427

At this point we are not going to write a check right now.0435

We will say enter the bill for payment later.0438

OK? So, that is what we will do and we will say OK.0441

So, now we can actually enter in the bill that we are going to pay for later.0450

And it also opens up a select reconciliation report.0455

So, we will say we want it printed or display it. 0461

It gives us at this current data and this little warning.0464

Then we will click OK to the warning and it pulls up our little report here for the summary report.0467

And what are balances of 412.62. That is what we owe for 412.62. 0473

That is the statement and of course it gives us our detail report.0482

Now, that we have gone over reconciling a credit card and marking those cleared transactions.0486

We are going to now discuss paying that credit card bill.0491

Once we get the statement in the mail we have a credit card billing in front of us that needs to be paid.0495

So, we are going to go over to our QuickBooks.0501

And after we have reconciled that account it brings us into entering the bill. 0503

It gives us the option of writing a check immediately or entering the bill.0507

We had not entered the statement bill yet so we are going to go ahead and enter that in.0511

That is why we chose that and it brought us to entering bills.0514

From the entering bill list you can always get here by using the vendor menu and say enter bills.0518

It will bring you to the same window.0525

From here we want to make sure we have our credit card.0529

Bayshore Cal oil is the vendor that we have chosen to pay.0532

The amount is from the credit card statement that we have just reconciled. The $412 and 62 cents.0536

We want to make sure that the data is correct. It automatically puts it into the account.0545

As we have already entered in the expenses of fuel from those receipts and from the statement.0551

We have expensed all those but it went to the liability account of a credit card.0556

So, now that we are writing a check we are writing that check against the liability account credit cards.0560

So, we had an outstanding amount of $412.0568

Now, we are going to clear that out by writing a check.0572

So, now the balance on our credit card should be zero.0575

Notice here on the right corner we still have an option for customer job.0579

So, that this was against a particular customer job and we are paying it.0584

And we can put it out there and also record it on our invoices to them but we are not doing that in this case.0588

So, we have the bill there. We have entered it in.0595

We are going to go ahead and say save and close.0597

Now, that is done. The bill is in there. 0600

We will notice that on our account, our chart of accounts.0603

It is now a zero balance whereas before it was $412 and 62 cents.0607

So, now we are going to go ahead and write a check for that.0613

We have entered the bill. Now, we are going to write a check.0616

So, we are going to say. We are going to go up to our right checks window.0620

So, we are going to say banking and write checks.0625

And the first thing we are going to do is who are we going to pay?0628

We are going to use our checking account and we are going to pay who? Bayshore credit card.0631

When we hit tab it pulls up a little open bills exist.0638

So, that is neat. It says hey wait a minute, there is a bill that you need to utilize. What we are going to do?0643

Since that is continue in writing a check we are going to apply this check against the bill that we have entered in QuickBooks.0649

So, if there is bills that it exist you want to pay that bill and not have it cleared out or have it cleared out.0657

You want to make sure you go to the go to pay bills.0664

So, we are going to choose go to pay bills and it is going to open up a new window for us.0667

This is the pay bills window. Here it says show me all the bills that are due.0672

Or we can say everything due before certain date and we say OK, that is neat.0678

We have our first one up here Bayshore Cal oil service listed for $412 and 62 cents.0685

We can filter this view by all vendors or by certain vendor.0693

At this point in time it is by due date.0699

So, we are going to look at this or it is actually by vendor. It is sorted by vendor right now.0703

And we can sort it by due date. We can sort it by amount.0708

We can sort it every which way we would like.0711

But for this purpose we are going to go ahead and click on the Bayshore Cal oil service, our credit card.0713

We are going to highlight that. 0722

We can actually highlight all of them if we want to pay additional people and write other checks.0723

At this point we want to say OK, this is good. We are only going to pay the one bill.0729

We can go and look at the bill if we want it to.0735

We can set a discount if we want it to. We can set credits. We can do all different things.0737

But at this point we are just paying the bills straight of $412 and 62 cents.0741

We can say this is going to be from our checking account. OK?0747

We can choose it from whatever account we want to pay from.0753

This we are going to write a check to be printed of $412.0756

We can say pay selected bills of the bottom right and it will record a check to be printed now.0762

It just said here is a summary of payment from your bills.0769

It will list all of them here and the total that we are paying.0772

And we say pay more bills or print the check.0774

At this point we will say done and now we can look at our checking account.0777

And there is our check to be printed for $412 and 62 cents that are recorded in our checking account.0783

So, I hope that helps you. That is the end of this particular lesson on working with credit cards.0794

Thanks again for using educator.com. We will see you next time.0800