How to Do Bookkeeping for a Business Credit Card
The monthly statement from your credit card company is essential for verifying purchases but does not replace simple bookkeeping practices. Credit cards provide business owners and employees with the means to analyze expenses and keep track of reimbursements if the company does not provide employees with company cards. Whether your company uses software or ledger books for its bookkeeping, keeping track of card use is a simple matter.
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Instructions
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Enter the credit card account into your ledger or computer. Include the account number or name and the contact information of the credit card company. Put the credit line in the computer or ledger to help prevent you from going over your limit.
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Enter the starting balance of the card. If you enter the account when first opening it, the balance will be $0. If you enter an existing account, enter the balance from the last statement.
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Enter any debits to the card into your system. Include a description and list whether the expense is a tax deduction. If you are an employee using your own card for business purposes, include an identifying mark to show that it is reimbursable. Add the debit to the balance.
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Enter any payments to the account as credits. If you are using a ledger, subtract the credit from the balance. If you keep your books on your computer, the software will do this for you.
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Reconcile your account with the statement monthly. Compare your statement to your receipt and your bookkeeping account. If the statement is wrong, contact your credit card company to request an investigation.
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Tips & Warnings
Be sure to add any monthly interest charges into your system. If you are keeping your books on paper, these charges are debits.
