For the best expense reporting is it better to download the credit card transactions in a separate

KJC
KJC Member
account for the credit card, or in Checking as I pay them. What are the pluses and minuses to each? I use the Banking Summary Report

Answers

  • RickO
    RickO SuperUser, Mac Beta Beta
    Always, always, always keep your credit card transactions in their own separate account in Quicken. When you pay the credit card bill, use a transfer transaction from your checking to the credit card account. I will leave it to others to list the multitude of reasons that this is preferred.
    Quicken Mac Subscription; Quicken Mac user since the early 90s
  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭
    edited February 15
    It is best to set up a separate account for the CC.  Then set up online services for it so you can download the actual transactions (or manually enter the transactions if that is your preference) and assign the appropriate categories there.
    When you pay the CC from your checking account, set up the category as a transaction as a transfer where the CC account name is in brackets...ex., [My Visa].  By doing it this way you will avoid doubling your expenses.
    (QW Premier Subscription: R33.24 on Windows 10)
  • J_Mike
    J_Mike SuperUser ✭✭✭✭✭
    RickO said:
    Always, always, always keep your credit card transactions in their own separate account in Quicken. When you pay the credit card bill, use a transfer transaction from your checking to the credit card account. I will leave it to others to list the multitude of reasons that this is preferred.
    Two advantages to keeping a separate CC account;
    The individual transaction dates are retained.
    The Payee for each transaction is retained for future reference.
    QWin & QMac (Deluxe) Subscription
    Quicken user since 1991

  • RickO
    RickO SuperUser, Mac Beta Beta
    One more: you can split each transaction among categories with separate memos while retaining its status as a single transaction IRL.
    Quicken Mac Subscription; Quicken Mac user since the early 90s
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    An exception of course would be if your card is actually a Debit card and the payments, transaction by transaction, come directly out of your checking account.

    In that case the card transactions are just like writing checks and it is all one account.
    QWin Premier subscription
  • volvogirl
    volvogirl SuperUser ✭✭✭✭
    You need my standard write up......
    The proper way is to set up a credit card ACCOUNT and enter the charges into it when the purchase is made and assigning it to a category. Then when you pay the credit card bill you TRANSFER the payment from your checking account to the credit card account (not a category).   Then if or when you download the payment from the bank you match it to the one you already entered.

    When you enter the payment in your checking account you put the credit card account name in for the category using square brackets around the name to indicate it is a transfer...like this… [credit card] or newer Mac versions have a separate Transfer column.

    I used to do it the wrong way for years!  Then I wised up and now enter them properly. I would split my credit card payment into all the categories on one transaction in my checking account. And since I always pay more than the bill I would need to figure the difference and put it to another category.  But then I needed to have them entered on the date the charges actually happened. So I finally set up a credit card account. It makes it much easier to enter and balance!

    And if you split your credit card payment into the categories and some of the categories are Transfers to the same Account  it will lump all them together and make 1 transaction in the Transfer Account.  

    Here's a list of some other reasons why you should do it this way…..
    You don't have to wait to make the payment and split it out
    You won't run out of split lines (In older versions there's only 30 lines)
    You can use both the payee and memo fields for more description
    You don't have to figure out the difference if you pay a different amount
    Then your Credit Card Account will exactly match your statement
    Charges get entered with the right date (better at year end for taxes)
    You can enter all charges to date, not just what's on the bill - then you can see what you still owe
    You won't forget what a charge was for if you enter it right away from the receipt

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    @volvogirl you are exactly right. I used to do the big split at payment time and it was a pain in the neck and not very accurate.

    This approach makes even more sense if you download the credit card transactions. With judicious use of reminders, renaming rules and memorized payees, I hardly ever need to enter any transactions manually, just verify and accept them when they download.

    Ebay, Stripe (for small stores), and Amazon are the biggest remaining challenges when it comes to deciding which category to use for each transaction.
    QWin Premier subscription
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    It is my strong belief that your Q setup should ALWAYS reflect the real world.
    So, your credit card is, in the real world, a separate account than your checking, and a separate account than other cards.
    So, setup your account in Q to reflect what's in the real world.
    Where this sometimes gets a bit tricky is if you have 2 cards, with differing card numbers, on a single credit card account (I have this situation) in which case since I get a single bill, listing all card transactions it's setup as a single account in Q,
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • RickO
    RickO SuperUser, Mac Beta Beta
    volvogirl said:
    You need my standard write up......
    Thanks volvogirl. I was hoping when I said "leave it to others" that you would chime in. You have the bestest list! :-)

    Quicken Mac Subscription; Quicken Mac user since the early 90s
Sign In or Register to comment.