What type of account (asset or liability) do you set up a credit card in QuickBooks Online (2024)

‎November 01, 202303:08 PM

• QuickBooks Online

Hi, finance.

I'm here to help you select an account and set up your credit card to QuickBooks Online (QBO).

Credit cards are considered liabilities, but in QBO, we record them as credit cards. Even though they are classified as credit cards, they are still liabilities.

To set up a credit card, we have to:

1. Go to Accounting menu, clickCharts of accounts tab, then selectNew. |
   
   
2. ChooseCredit cards.
3. From theSave account underthe dropdown list, select for credit cards.
   
   
4. Under theTax form section, choose a credit card.
5. Fill out the necessary information.
6. ClickSave.

Here's an article you can visit to learn more about setting up your credit cards in QBO:

Additionally, I've added this article for future reference about processing your credit card payments in QBO:Record your payments to credit cards in QuickBooks Online. This way, you can keep track of your expenses and maintain accurate financial reports.

If you have any questions regarding how to link your credit cards to QBO, please leave a comment below. Have a wonderful day!

Thanks for your follow-up, @finance-robbprec. It's good to know that the steps shared by my peer above help you in completing your task.

Yes, you're right. When it's time to reconcile, you only need to reconcile the parent account since all transactions within the subaccounts are consolidated into it.

Check out this article which will help guide you through the process: Reconcile an account in QuickBooks Online. If you're new to this, you can seek help from your accountant to maintain accuracy and balanced accounts.

I'm adding this article in case you encounter discrepancies at the end of the reconciliation and know how to fix them: Fix issues at the end of a reconciliation in QuickBooks Online.

If you have any clarifications with the reconciliation process, please don't hesitate to leave a comment below. The Community is available around the clock to provide support and guidance.