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Credit card reconciling

James DavisJames Davis Member Posts: 2

Hi

When I start to reconcile a new credit card what do I put as a starting balance? Would I put it as 0.00 or the credit card available credit or the amount of transactions made that month? What would I put in as a starting balance every month after?

Also I have a credit card account that my accountant never reconciled in 2016, so how do I start that one fresh for 2017. Thank you for any help!

in Accounting Technical Support

Comments

  • James_HudsonJames_Hudson Member Posts: 121 admin

    Hey James,

    When you're reconciling a credit card, the ending balance has to do with the actual transactions that you've made. Let's say you spent $1000 on the credit card this month, your ending balance would be $1000. The starting balance for a brand new credit card would be, as you expected, $0. The available credit amount doesn't really come into play here.

    When it comes to starting fresh with the credit card you mentioned, as long as you enter the closing balance for 2017, and make sure that none of 2016's transactions come into the picture then you should be all good!

    Let me know what you think!

  • James DavisJames Davis Member Posts: 2

    Thank you so much!

    Very helpful, because you don't have to pay a credit card in full each month I realize I would carry a balance and that's what got me.

    Thank you again!

    James

  • Bonnie_67Bonnie_67 Member Posts: 8
    When I enter receipts from expenses that I charged on my credit card how do I enter the payment made to these said expenses. Doing a transfer does not work as i have been told to do in the past because I am paying the amount owing to the card in a lump sum and not for each individual transaction therefore, the amounts don't match. When I enter the credit card payment as was a withdrawal from my bank account it is showing as another expense when in actual fact I already incurred these expenses and recorded them under category "business credit card"
    Thanks In advance
    Bonnie
  • JordanDJordanD Member Posts: 515 ✭✭✭

    @Bonnie_67 I've answered your question in your previous post! :)

  • burritoburrito Member Posts: 5

    @JordanD --- Found the link to the post at the top of Google search results. Would be helpful to link to "Bonnie's previous post" in the comment/reply.... I can't find where that answer may be. :-(

  • JordanDJordanD Member Posts: 515 ✭✭✭

    @burrito Thanks for that feedback! You can find that discussion here: https://community.waveapps.com/discussion/comment/9268#Comment_9268

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