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Bank card accounts should always be reconciled every month the same as your money.

Alternatives For Reconcile Date
You can easily reconcile to your bank card statement, you can also reconcile to your balance at month end per the real history in online banking. If you are using the credit card statement, you should reconcile into the statement ending when you look at the month after the month you will be taking care of. For example, if you are focusing on the December books, reconcile to your credit card statement ending in January. Let’s say the card statement cutoff date is the 11th. In the event that you only reconcile to your Dec. 11 statement, you’d have a span of activity, December 12 – 31 to be exact, which is not reconciled. You don’t want to risk overlooking an error during that period of time.

In case your card statement closes late in the month and also you require the books wrapped up prior to the latest statement is available, it is possible to spot check out the unreconciled days to make sure nothing looks amiss.

Easier Than Bank Reconciliations
Generally reconciling charge card accounts is much easier than bank accounts since you don’t have to deal with outstanding checks. Sometimes you've got a transaction or two that crosses the termination of the statement cycle, but that’s about any of it for outstanding transactions. If you see old outstanding transactions on a credit card reconciliation, you realize you've got accounting errors to wash up.

A Standard Mistake
One common mistake we come across is entering the charge card payment produced from the financial institution account twice – once through the bank side and again through the charge card side. If you add the charge card payment from the downloaded bank transactions, make sure to match the transaction in the charge card bank feed, or the other way around. To prevent confusion, you may want to manually go into the transfer of cash from the bank towards the charge card account, then match the transaction when you look at the operating account bank feed and match it again within the bank card bank feed.

Multiple Employee Cards
A number of our clients use credit cards where several people are assigned unique cards. In this instance you will have to link each card separately in online banking to a separate account into the chart of accounts. For example, you may possibly have credit card type accounts in your chart of accounts that appear to be this:

In this example, the master card account administrator is Maya. Each person’s card purchases flow until the individual card account. Payments on the card, however, only flow right through to Maya’s card. You'll see an adverse balance start to develop on Maya’s card since that card is getting credit for all the payments. You may either edit the payment to spread it towards the various accounts, or do a journal entry to reallocate the person card balances.

In a case such as this with multiple cards linked on one master account, we suggest reconciling the parent account, Wells Fargo charge card, rather than doing a reconciliation on each individual card.

Steps To Reconcile A Credit Card
To do a charge card reconciliation utilising the card statement, first agree total card credits (payments from the card and credits from vendor refunds) per the card statement into the total payments and credits showing per the sum total into the reconciliation window in QuickBooks. If the two amounts do not agree, compare each card payment and credit in QuickBooks to the statement to ensure that you have all the cleared transactions checked off.

Next agree total purchases per the card statement to total charges per the lender reconciliation in QuickBooks. In the event that two amounts usually do not agree, have a look at transactions that took place in the very end of the month per the statement to be sure all transactions are entered.

Once in a while for reasons uknown a credit card charge does not download. If you want to add a card purchase manually, it is possible to enter a brand new transaction or double click to open up an existing card purchase, then duplicate the transaction. (In QuickBooks desktop, right click on a transaction to obtain the duplicate option, in QuickBooks Online click More in the bottom of the transaction window, then Copy.) In case you need to know about Credit Card Payment Doesn't Show Up In Reconciliation, please call QuickBooks Support.

Also occasionally a card purchase will download twice. You could see a description regarding the first entry of “pending” while the second download occurrence is the final transaction. Should this happen, simply delete one of many entries. Deleting a transaction that has been added through the bank feed will put it back in the financial institution feed, which means you will also need to go back in the bank feed and choose the transaction, then under Batch Actions select to exclude the transaction.

Once cleared credits and card charges in QuickBooks consent to the card statement, you can easily complete the reconciliation. The actual only real outstanding transactions, if any, ought to be transactions that cross the statement end date. Anything dated earlier is a mistake and really should be cleaned up before you finalize the reconciliation.

That’s it! Reconciling charge card accounts must be a quick and simple process, especially if you’ve followed the steps within the prior post, A Right Way and an incorrect Way to Enter Credit Card Purchases, to import your bank card transactions.

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Credit Card Payment Doesn't Show Up In Reconciliation