Earn Points for the Boss
Reconcile Those Business Credit Cards
Reconciling your bank accounts monthly in QuickBooks is a must, but did you know that you should reconcile your credit card accounts monthly too? Doing so will ensure that common errors, such as misposted or forgotten charges, are corrected in your company's file as the year progresses. No one enjoys the daunting task of cleaning up 12 months' worth of transactions at the end of the year - except maybe your accountant!
QuickBooks has a Reconcile utility that can reconcile your company's credit card account with the card's paper statement. The Reconcile utility is a part of the Banking menu and opens in its own separate window. Reconciling your credit card account every time you receive a paper statement will help you catch any irregular, incorrect or missed transactions, which can contribute to an inaccurate account balance. Additionally, the program will automatically open the option to pay the bill after you complete the reconciliation process.
As with bank reconciliations, the credit card reconciliation feature is accessed by going to the "Banking" drop-down menu at the top of your screen and selecting the "Reconcile" option. And, as with the bank register, your credit card accounts also have registers available where all charges and payments can be entered.
Unless you pay your company card in full each month, entering credit card charges on the date incurred is important. Here's why: taxpayers are entitled to a deduction for business expenses when charged to their cards. If you're always waiting to record your credit card charges until you pay your bill, you're inadvertently missing out on significant deductions.
Many business owners run a significant portion of their monthly business expenses through company credit cards. Those cash back offers and frequent flier miles are just too good to resist.
At Off-Site Business Services, we can help reconcile your charges monthly, and you'll be able to enjoy all the perks of being a platinum card holder without the headache of a major year-end clean-up. Give us a call today!