How to Record American Express Payments in QuickBooks

Save

Most businesses use some form of credit to purchase supplies and pay other expenses. Intuit QuickBooks sets up credit card accounts similarly to bank accounts, and each transaction is entered into the account ledger. Each purchase is coded to increase the balance of the appropriate expense account while simultaneously increasing the company's liabilities. When you make a credit card payment, the company's cash balance and the liabilities balance both decrease.

  • Open the checking account ledger for the account used to pay the American Express bill.

  • Click on the Date field and choose the date the payment was made. Press the "Tab" button once and type the check number for the check you used to pay the bill. If you made the payment with cash or an automatic debit, clear the Number box. Press the "Tab" button once.

  • Type "American Express" in the Payee field. Press the "Tab" button once.

  • Enter the amount of the payment in dollars and cents in the Payment field. Press the "Tab" button three times.

  • Choose the credit card account from the Account field. Press the "Tab" button once.

  • Enter a memo for the transaction, such as the statement month and year that corresponds to the payment.

References

  • Photo Credit Hemera Technologies/AbleStock.com/Getty Images
Promoted By Zergnet

Comments

You May Also Like

Related Searches

Check It Out

Are You Really Getting A Deal From Discount Stores?

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!