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Quickbooks Pro 2012 on Cash Basis

Posted on 2012-03-10
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Last Modified: 2012-03-14
We run our business on a cash basis.  We are confused how to show in the register a credit card payment when we they just draft our account and there is no check involved.

With QuickBooks it looks like we have to have a credit card liability account.  Doing it that way won't work for us.

So, how do we reflect our credit card payments and tax payments that both use Electronic Funds Transfer.  Also, if you know any place I can read more about QuickBooks on a cash basis that would be helpful.
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Question by:sharingsunshine
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stlinae earned 500 total points
ID: 37707194
In order to enter an EFT payment, simply enter a check and in the check number field enter "EFT" This will remove the funds from the account, allow you to reconcile with the bank statement and keep track of your payments.

QuickBooks works exactly the same way if you're on a cash or an accrual basis. The only difference is in your reporting. It should still be reflecting what it is you are doing in real life. You can change your default reporting type to cash by going into
 Edit>Preferences>Reports and Graphs. In single user mode, you will be able to change the Company Preference from Accrual to cash.

As far as setting up a liability account for your CC's, I don't. Set up your Credit Cards as Credit Card account types. Then, when you charge to the credit card, simply do so with the Credit Card Charge screen. (Banking>Enter Credit Card Charges) This will allow you to track your current balance and you expenses. Then when you need to pay on the credit card, simply 'write check' from the bank account to the CC account. Make sense?
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by:sharingsunshine
ID: 37720079
thanks for your help.
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