Small Business Credit Card and Checking Account

tuttio · January 2023

Hello. I use Quicken for my small business. In the past, I have entered all my credit card transactions, individually, into my checking account (using the "split" feature). However, in order to save time I have started to download my credit card information into my added credit card account on quicken. When I pay the cc account the payment automatically transfers over to my checking account. Great. Is there a way to run an accounting report of all my checking charges and credit card charges for tax purposes? Or am I going to have to go back to individually entering all cc charges into my quicken account?

Frankx · January 2023

Hi again @tuttio,

A report on the credit card will be sufficient to show those expenses for tax purposes. But you should also consider whether there are other accounts that have expenses that your accountant may need. You should consider running a number of reports that are tax related, just so your accountant has a full view of your tax-related finances. Here's a screenshot of the standard reports available in Quicken. I think you should consider running all of many of these for your tax preparer (with the exception of the last report at the bottom).

Let me know if you have any followups.

Frankx

Tom Young · January 2023

First, understand that transactions, wherever they are recorded, can be identified as a transaction that needs to be reported on an income tax return by associating the Category used in the transaction to an income tax return line item. Like this:

Image: https://us.v-cdn.net/6031128/uploads/editor/fx/7c4myrgwqrmg.jpg

You make the association by editing the Category and clicking on the Tax Reporting tab and finding the appropriate Income Tax Return line to use:

Assuming you haven't done this you can do this "after the fact" by finding your business Categories and making the association now. But there's no need to enter all your business cc charges into your business credit card Account if you've been consistent in Categorizing these charges. Simply run a report limited to ONLY business Categories, a report that uses both the checking Account and business credit card Account, and that should pull up all your business-related transactions.

Frankx · January 2023

Hi @tuttio,

The answer depends on whether you limit the payments you made (with this credit card) while using this particular credit card to ONLY business transactions, or if you also used that card for personal items, as well are business expenses.

If you used it ONLY for business related transactions - you are golden. All of the entries are business related, and you can classify that card's total charges as business expenses. But, if you used it for both personal and business expenses - at this point in time, and unless you decide to make adjustments to the previously entered credit card transaction entries in Quicken, - you will need to eliminate any personal expenses included in the account totals, before you deduct that account's expenses for tax purposes. You can still still run a report on those expenses in Quicken, but - if there are personal expenses included along with the business expenses - the IRS would require you to subtract those before reporting them on your tax return.

Let me know if you have any followups.

Frankx

tuttio · January 2023

Frankx - yes, the cc is used for business only. Each individual charge is categorized on the credit card account. Then when it gets paid it puts a credit card payment amount on the checking account, but the categorization is not there. How do I print one report for my accountant that shows both the checking account categories and the credit card categories? Or do I need to print 2 reports?

volvogirl · January 2023

Just include both the credit card account and the checking account in the report. It doesn't matter where the payment came from. You are reporting the categories.

Frankx · January 2023

Hi again @tuttio,

A report on the credit card will be sufficient to show those expenses for tax purposes. But you should also consider whether there are other accounts that have expenses that your accountant may need. You should consider running a number of reports that are tax related, just so your accountant has a full view of your tax-related finances. Here's a screenshot of the standard reports available in Quicken. I think you should consider running all of many of these for your tax preparer (with the exception of the last report at the bottom).

Let me know if you have any followups.

Frankx

volvogirl · January 2023

Frank, before they started using the credit card account they would split the checking acct payment into the categories. So they need to include those too.

tuttio · January 2023

Frankx - Thank you for the info. I have been using Quicken for 20 years, but never used the reports at the top (only used the register report from the "wheel" on the right of the account). The tax report at the top combines the accounts - so that is great. Thank you for your help.

Frankx · January 2023

Hi again @tuttio,

I am glad to hear that my suggestion helped you. But don't fret about knowing all the reports that Quicken makes available... I am still learning things about Quicken that I never knew. It just shows that no matter how much you might know, there are still things that you can learn...

Take good care!

Frankx

Small Business Credit Card and Checking Account

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