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How Do I Account For Credit Cards?

A credit card should be managed in your software as a bank account.

If the credit card is used solely by one individual they must be responsible for obtaining as many receipts as they can to support the payments and certainly account for anything they couldn’t get a receipt for (some parking tickets and online purchases for example).

See Set up a Bank Account for how to assign or create an Account Code specific to your credit card account.

Then, for all transactions that are settled with your credit card, record the payment against this account code.

The majority of the expenses will be nominal payments and may include VAT but occasionally the card may be used to pay a supplier or refund a customer

See, for example, Record a Supplier Invoice Payment.

Similarly, process any refunds from your credit card. See Record a Customer Refund.

When you receive your credit card statement, you can then reconcile the transactions in the credit card statement with those recorded in your product – See Perform a Bank Reconciliation.

After the reconciliation, you can then process the credit card payment. See Record a Bank Transfer.