The other day I wrote a guest blog about “Entering Credit Card Charges into QuickBooks, the Right Way!”. One of my main goals working with clients is to teach them the correct way to use QuickBooks. QuickBooks is a great tool for small business owners, but you must know how to use it. In my guest blog post, I taught you the best way to record your credit card payments in QuickBooks. Today I’d like to talk about the top 3 benefits to using this method to record your credit card receipts into QuickBooks.
- Always Know How Much You Owe!
If you are good about keeping up with your bookkeeping tasks and recording your credit card charges as they occur, you will always know the balance on your credit card. This avoids surprises when your monthly credit card statement arrives and helps you plan for your upcoming cash outflows.
- Accurate Financial Statements!
Let’s face it, quite a few small businesses do not have the luxury of paying their credit card bill in full every month. This method for posting credit card charges into QuickBooks, allows the small business owner to choose the credit card transactions to pay this month and which ones will have to wait until next month to pay. QuickBooks will keep track of the amount still owed and the transactions still owed to your credit card company. Thus providing you an accurate accounts payable figure on your balance sheet.
- Save Time!
The third benefit for posting credit card charges correctly to QuickBooks allows the small business owner the opportunity to quickly look up transactions. Let’s say you’re trying to figure out how much you typically spend at the big box retailer for office supplies. By recording the credit card charge to the correct vendor, you can quickly pull up that big box retailer and figure out how much you spent. This saves a ton of time over scrolling through every single credit card payment looking for those office supply charges. Some bills have them, some do not, and now you’ve just wasted a ton of time searching for these charges. Let’s face it, which small business owner does not love to save time!
There you have it. The top 3 benefits to using the correct way to post credit card charges to QuickBooks. Not only does it allow you to plan for your upcoming cash outflows, it provides business owners with accurate financial statements, and best of all it saves time! Give it a try and let me know how you like using this QuickBooks tip!
Check out my QuickBooks Tutorial about “Entering Credit Card Charges into QuickBooks, the Right Way!”..
Michelle is the owner of Trailhead Accounting Solutions CPA, LLC, an Erie, CO based CPA firm focused on providing small and mid-sized businesses with day-to-day accounting, bookkeeping, and business solutions. Michelle is a CFO turned consultant who loves working with small businesses and entrepreneurs. When she’s not crunching numbers, she can be found hiking, remote camping, gardening, quilting, and hanging out with her family.