How to Reconcile and Pay a Credit Card Bill

How to Reconcile and Pay a Credit Card Bill

Quickbooks LogoBefore you pay a credit card bill, first reconcile the credit card statement against the credit card transactions you’ve entered in QuickBooks.

After the reconcile, QuickBooks will guide you to pay the credit card bill. You can pay all, part, or none of the bill at this point.

To do this task

  1. Go to the Banking menu and click Reconcile.
  2. Click the Account drop-down arrow and then click the credit card account you want to reconcile.
  3. In the Statement Date field, enter the statement date.
  4. Compare the opening balance from your statement to the amount in the Beginning Balance field.
  5. In the Ending Balance field, enter the ending balance from your bank statement.
  6. (Optional) In the Finance Charge field, enter the finance charges you haven’t already added as a transaction in QuickBooks, enter the date in the Date field, and click the Account drop-down arrow and then click the account.
  7. Click Continue to go to the Reconcile window.
  8. Click transactions that appear in both the Reconcile window and on your statement to mark these transactions as cleared.If an amount doesn’t match or a transaction contains an error, correct the transaction.
  9. If you find a transaction on your statement that is missing from the Reconcile window, enter the transaction now.
  10. When you’ve finished selecting the transactions to reconcile, review the amount of the Difference entry in the bottom right corner of the Reconcile window:If the amount of the difference is:
    • 0.00: Your credit card account is reconciled with your statement. Click the Reconcile Now button to complete the reconciliation.
    • Not 0.00: Your credit card account isn’t reconciled with your statement. To complete the reconciliation:
      • Find and correct as many differences as you can.
      • Click the Reconcile Now button.
      • Follow the onscreen instructions.
  11. In the Make Payment window, decide how you want to pay the credit card bill:
    • Click Write a check for payment now if you want to pay the credit card bill now and you’re sure you don’t need to track the bill.
    • Click Enter a bill for payment later to enter a bill in accounts payable. You can then track the bill and pay it later when it’s due.
    • Click the Cancel button to leave the amount owed in the credit card account, but to not pay or enter the bill (the account is still considered reconciled).
  12. Click OK.
  13. Complete the payment transaction:
    • If this is the first time you’re paying this credit card company, enter the name of the credit card company in the Pay to the order of field (if you’re writing a check), or the Vendor field (if you’re entering a bill). For subsequent payments, QuickBooks remembers the name of the credit card company and fills it in for you.
    • If you want to pay part of the amount due, edit the amount that QuickBooks has filled in.
    • Save the transaction.