Cc Account

Manage credit card accounts and transactions in QuickBooks Online

Setting up and managing credit card accounts correctly helps you keep accurate records and makes reconciliation easier. Below you’ll find how to set up accounts, enter charges, record payments, and handle situations like changing banks or merging accounts.

Set up a credit card account

To track credit card activity, you must create a specific account type in your Chart of Accounts.

1. Go to the Settings (gear icon) and select Chart of Accounts.
2. Select New.
3. In the Account Type dropdown, select Credit Card.
4. Name the account (for example, “Business Visa” or “Citi Costco”).
5. Select Save and close.

Note: Do not set up a credit card as a Vendor or a regular Bank Account. This ensures your liabilities and expenses are tracked correctly.

Enter credit card charges

When you make a purchase with a credit card, you need to record the charge and the expense category.

1. Select the + New button.
2. Select Credit Card Credit (to record a refund/credit) or Credit Card Charge (for a purchase).
3. Select the specific Credit Card account from the dropdown.
4. Crucial Step: In the account details section, select the expense or asset account that represents what you bought (for example, “Office Supplies” or “Travel Expense”). Do not select the credit card account itself in this field.
5. Enter the amount and select Save and close.

Record credit card payments

When you pay the credit card company, you are transferring money from your bank account to reduce the credit card liability.

1. Select + New.
2. Select Check, Expense, or Transfer (depending on how you made the payment).
3. The Bank Account (or asset account) you paid from should be selected in the payment field.
4. In the category/payment section, select the Credit Card account you are paying to.
   • If using a Check or Expense: Select the Credit Card account in the “Category” column.
   • If using a Transfer: Select the Credit Card account in the “Transfer funds to” field.
5. Enter the payment amount and select Save and close.

Tip: You do not need to “Enter a Bill” for credit card charges. Entering a charge immediately creates the payable in the credit card register.

Connect or reconnect online banking

If QuickBooks is not recognizing an existing account for a bank feed connection, or if you need to switch the connection to a new login:

1. Go to Settings and select Chart of Accounts.
2. Locate the account and select View register (or the account name).
3. Select the Edit (pencil icon) and then Edit account info.
4. Check the box for Disconnect this account on save.
5. Select Save and Close.

Once disconnected, the account is available for a new connection. You can now go to the Banking or Transactions menu to connect the account using the updated credentials or bank feed.

Merge credit card accounts

If you have duplicate accounts or need to move transactions from one account to another (for example, during a bank switch), merging is the best method. Warning: Merging cannot be undone.

1. Disconnect Bank Feeds: Ensure both accounts are disconnected from online banking to avoid errors.
2. Review Transactions: Make sure you have added or matched all downloaded transactions in the Banking feed. Any transactions left in the “For Review” tab will be lost if you merge the accounts.
3. Go to Settings > Chart of Accounts.
4. Open the account you want to keep (the destination) and note the exact name.
5. Open the account you want to get rid of (the source).
6. Select Edit and change the name to match the destination account exactly.
7. Select Save and Close.
8. When prompted, “This name is already being used. Do you want to merge them?”, select Yes.

All transactions from the source account will move into the destination account.

Handle bank changes (for example, switching from Amex to Citi)

If your issuer changes (like a Costco card switching from Amex to Citi), you may need to adjust your accounts.

If you created a new account and transferred the balance: You may notice the “Previous Balance” or “Opening Balance” is zero during reconciliation. This is correct. The new account did not exist before the transfer, so the opening balance is technically zero. The transfer you created is the first activity in the register.

To keep historical data: Ideally, you should merge the old account into the new one (or vice versa) rather than creating a transfer. This preserves the transaction history and reconciliation status. Follow the steps in the “Merge credit card accounts” section above to combine the old Amex tracking into the new Citi account.