The credit cards are the type of card which is owned by the clients. It is use to make purchases as per your requirement and is also helpful in cover expenses of yours.
The expenses which are covered by the credit card, its errors are discussed here. For each credit card that the client uses for its business, a QuickBooks account needs to be set up.
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The account belongs to the credit card. Compared to a debit card connected to a bank account, is different.
Entering of the Credit Card info Manually
Following are the things which are to be check in case if you are entering the information of credit card manually:
- Verify the validity of the credit card number.
- Verify the verification code, which are typically located on the card’s back.
- Count if the of credit card numbers have 16 digits.
- Measure the length of the card for example an American Express card is 15.
- Entre the verification code in addition to the credit card number.
- Verification code is the three-digit code on the back of the card from them the majority of cards, including Visa, MasterCard, and Discover cards.
- In case of American Express the verification code is the four-digit code on the front of the card.
- Check if the credit card number and other data fields are free of spaces or other special characters.
- Always utilize the US USPS website’s customer’s address.
Following are some common errors which are defined below:
- The customer always pays for the portion of its credit card bills.
- The debt bills are always entered in the Accounts Payable.
- The same expense account is used to record all credit card expenses.
- The Accounts for credit cards can’t be reconciled.
Symptoms of Common Credit Card Errors in QuickBooks
Some of the common symptoms are defined below:
- When there is a high debt on accounts payable due to several credit card bills then the errors can take place.
- The costs of the expense seem excessively high.
- The one major symptom is the balance in the bank account seems accurate.
Credit Card Type Account
Following are the reasons for which the credit card account should be used:
- A reconciliation procedure which is comparable to reconciling a bank statement it includes the comparison of the credit card statements from the credit card company.
- The account which pays reports of Accounts Payable in the case when a credit card statement’s total balance is not paid full due to these reports and due dates is not also affected.
- Whenever the charge is made in a credit card, regardless of that the credit card company has been paid or not. In that case the account is normally deductible for the income tax purposes.
- Credit card transactions never be recorded on accrual basis in the financial statements as if the bills are utilized in order to record them.
Credit Card Transaction Entry
The first step is to choose credit card is to enter the charges and the credits. These charges and credit are used to pay the purchase of the goods and services or later.
- Giving the customer real-time financial information.
- Adding of an additional internal check to ensure that all credit card transactions are accompanied by a receipt if it is possible by entering the individual charges of the credit card which is used. You can do this by downloading them or via Online Banking.
- For the credit card transaction entry level, the effort in tracking these types of transactions is not practical for some of the clients.
- Clients are interested in entering a single credit card transaction which includes all types of charges and credits from all cards.
- For the type of each account, the credit card charges must be compiled before being submitted in full as a credit card charge.
Processing of Credit Card
Some corporate credit cards require the extra commercial codes which is very helpful in completing transactions. The user must define in case if his workplace mandates the use of a unique commercial code or not while making transactions. For this you have to go to the Merchant Service center and adjust it to the industry category. In case if your customers utilize unique commercial codes then you can handle commercial codes easily.
Following are the steps which are to be followed for the processing of the credit card:
- Log in by visiting to the Merchant Service Center by using the Login ID and Password.
- Now you have to select Account and the Account Profile from the homepage.
- Hit the edit button and from the drop-down menu click on the Account Holder/Business Information.
- Once you are done with the above steps hit on the Submit button after entering the last 4 digits of your SSN or business tax ID number.
- Now you have to select a different industry type from the menu.
- Now you have to select the reason for the account change.
- Once done by all the steps, hit the Next button and click Submit.
Steps to be Keep in Mind While Reconciliation of the Credit Card
The reconciliation of the credit card can be done by entering the ending statement balance and by comparing the transactions between QuickBooks and your transaction statements.
There are some mistakes that the reconciliation process frequently makes. They are explained below:
- Find Any of the Missing Transactions: The account won’t be reconciled until you input the transactions that are entered in your statement of the QuickBooks.
- Recognize Improper Sums: In case if the quantities of the transactions and the bank statement differ then the account cannot be reconciled.
- Finding Duplicate Transactions: Reviewing transactions will help you to find the transactions that QuickBooks does not include.
- Identify False or Fraudulent Charges: To ascertain whether the charges submitted into QuickBooks are valid or not, each and every charge should be checked.
Reconcile of Credit Card in QuickBooks
There are five steps which are to be perform by which you can reconcile the credit card in QuickBooks:
Step 1: From the left menu first, you have to select the accounting and reconcile option from the list of options.
Step 2: Now select the amount to reconcile and then enter your statement information from the drop-down menu of the accounting and reconcile.
Step 3: Now you have to match all the transactions of your credit cards.
Step 4: Make sure that the difference between the two is $0.00.
Step 5: Now you can create a bill according to it or can make a payment.
We hope that the above article will be very helpful in resolving the error of credit card. In case if you facing any issue then you can connect with Dancing Numbers experts via LIVE CHAT. We had a huge technician expertise which have the vulnerable knowledge about the QuickBooks issues. So they will help you in resolving your issue in a efficient and the effective manner.
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Frequently Asked Questions (Faqs)
What are the Common Credit Card Errors Which can be Encountered?
There are five common credit card errors which can be encountered:
• In case if your card is declined.
• In case if the payment is late or you forget to pay.
• In case if the annual fees is too high.
• It also depends on how much debt you have.
• In foreign countries your credit card does not work.
How can I Correct Credit Card Reconciliation?
Following are the steps to fix the credit card reconciliation:
• First you have to navigate to the vendors menu.
• Now select the pay bills option from the vendor menu.
• Now from the drop-down account you have to select correct account payable account.
• Hit the check boxes which you want to pay from the table.
• Now you have to entre the date of the bill payment.
• Choose the method of the payment.
• Click on the Pay button for the selected bills.
• Now select done and close the window.
What are the Common Credit Card Mistakes?
Following are the most common credit card mistakes which are done by all of us:
• Carrying the balance of credit card month to month.
• The payments are done by us is the minimum amount of which is to be paid.
• Payment is missing.
• We neglect to review our bill statement.
• The applicable fee or the APR is not known by the user of credit card.
• Withdrawing of cash in advance.
• Zero Percent APR offers are not understandable by us.
• The limit of your credit card is maximized.
• While using one we are applying for the other.
• Credit card is closed.