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Can someone help me with credit card reconciliation on QBO?

3 points · submitted Aug 2023 by u/iamgettingbuckets · QuickBooks Online

New business credit card user - I have 3 corporate cards for different partners in the business. So my QBO reflects the 3 individual cards plus the overarching corporate account that the cards funnel from.

  1. Should the individual cards be labeled as sub-accounts from the CORP account? Right now I have all of them labeled as their own individual Credit Card under Account Type & Detail Type.

  2. CC Rewards: What do you classify these as, 'Other Income'? I would normally classify credit card credits (like refunds, returns, credits etc) as 'Other Income' but in this case the credit is reflected on the overarching Corporate account... any advice here on classifying rewards credits appropriately?

In my first month, I think the overarching corporate account is not reconciling correctly for me, not sure why that is but there's some sort of time lag that is throwing me off... ie my reconciliation will be $350 off and there will be a $350 transaction 3 days later or something like that (so my reconciliation is off but in a recognizable way) - despite my individual card reconciliations having no issues. Should I even be reconciling the corporate account, or just the 3 individual cards?

TIA.

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izadiaz 3 points · Aug 2023

Rewards will always be other income. It does sound like it's a BOA card. Just link the Corp and then sub-acct like the above mentioned. When a reconciliation is off in QBO, just compare the selected transactions to what you see in the statements. I've seen problems between QBO and BOA connection and sometimes transactions don't sync properly.

cmrbookkeeping 5 points · Aug 2023

1) umbrella cc account A) partner #1 account (as a sub acct) B) partner #2 account (as a sub acct) C) partner #1 account (as a sub acct)

2) cc are other income

cmrbookkeeping 1 points · Aug 2023

You should always reconcile to the bank statement or credit card statement not every day if it’s reconciliation is off you always like the transactions that are on the statement the other ones go to the next month

gcullup 1 points · Aug 2023 · QBO Advanced Pro Advisor

Sounds like it's probably BofA? Here's what I do.... Create ones "BofA CC" 'parent' account. Then, wleach of the cards can be connected in the bank feed section and setup as a subaccount of the BofA CC parent account. This includes the main "CORP" account - I label this one "Pmts and Fees" because this is all that gets posted there... Then, when it comes time to reconcile, you do so at the parent account level. If you're a balance sheet stickler like I am, I also create a journal entry at month end to bring the balance in each subaccount to 0. Not in front of my computer right now, but as I recall it, it's a debit on the subaccount and a credit to the parent. This will leave some unreconciled remnants in your next month reconciliation, but they all balance to each other, so there's nothing to trip on there... Hope this helps!