How to Deal with Credit Cards 101

Hello. I have no accounting skills. How do I deal with credit cards? I know they are an account. The bank transaction where I paid the bill I think is a category = transfer to the card account. The transactions from the credit card for purchases are categorized to what they are = groceries, etc. but what do I do with the transactions from the credit card fee showing the payment from the bank was applied? Am I missing any other entry to balance it all out?

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  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    edited December 2019
    "but what do I do with the transactions from the credit card fee showing the payment from the bank was applied? "
    I'm not sure that I understand that statement.  There will be, in most instances, transactions that you created AFTER the card statement was cut.
    SO, your payment to the card account(s) will reduce (move closer to $0) the amount of the account ... but there will still (probably) be a balance in the account.
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Thanks everyone I have most of this. Final part that I didn't communicate well above. The credit card transactions come as two parts, payments/credits received and purchases made. The purchases and interest are the expenses. It's the payments/credits that I don't know what to do with. Is that a transfer and if so to what?
  • volvogirl
    volvogirl SuperUser ✭✭✭✭
    Well the payment would already be in your checking account from when you paid the last bill.  Any Credits and refunds you will need to enter into the credit card account.  If you have all the charges entered etc,  then the credit card account should match the statement on the closing date.  You don't have to enter the payments.  Those come as a Transfer from your checking account when you pay the bill.
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