Milwaukee Accounting

Here is a very good article about how to handle the accounting when you use credit cards. When a business pays for supplies using a credit card the merchant you bought from is already paid. when you buy with the credit card you are in essence borrowing money to pay the debt. This is different than actually owing the vendor. When you owe a vendor it is categorized by accounts payable and when you owe a credit card it has to be considered a liability.
If you have many cards and accounts then you need to make sure you do this correctly as it can be very confusing. Follow the link below to learn a little more on how to do this through your accounting software.

Basic Accounting – Understanding Credit Cards: Tracking Credit Card Entries for Small Business Bookkeeping | Suite101.com

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This entry was posted on Saturday, November 14th, 2009 at 7:41 pm and is filed under Milwaukee Accounting. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.