If you’re using a credit card as part of your business, you can add a category to your books to help you track expense transactions.
Here’s how to connect a credit card through your bank account:
- Log in to ZipBooks and select Transactions from the menu.
- Then, click on Manage Banks.
- Click on the round green + button.
- In the window that pops up, either click on one of the banks shown, or type the name of your bank in the Search bar.
- Put in your User ID and Password and click Submit.
- Choose which accounts to pull information from, including your Credit Card.
- The bank account you chose will now appear in your Manage Banks window.
And that’s it! Now you can save time by letting ZipBooks pull in your credit transactions automatically.
Here’s how to manually add a credit card category:
- Sign in to ZipBooks and select Transactions from the menu.
- Then, click on Categories.
- Click on the round green+ button in the top right.
- An Add Category window will slide in. Enter the Name of the account you’d like to set up and choose Credit Accounts (under Current Liabilities) for the Parent Category.
- Enter the beginning balance of the account in the Value field and turn the Reconciliation toggle to “On.”
- Click Save.
Your account is now set up and you’ll be able to add transactions to that account.
Note on categorization: Some novice accountants will confuse credit card payments (when you transfer funds from your checking account to pay off your card) with credit card purchases (expenses incurred while using your card). While credit card purchases will typically be categorized as Expense Transactions, credit card payments are just categorized as Transfers–not expenses.