New credit card

Question

I have created a new account for a new credit card, however, I am not able to reconcile the account and all the figures add up but it is putting me out by thousands.

have i maybe not created the credit card account correctly?

do i need to create an opening balance? or does it start at $0.00

i am a little bit confused as the previous card we used, money was loaded onto it before using. but this one is a bit different and I'm not sure if I have created the account properly.

it's the only thing that makes sense as to why it won't reconcile.

any help is much appreciated!!

julie_a_c · Answer

Hi&nbsp;Astrid159&nbsp;&nbsp;It sounds like the old card was actually a debit card if you had to load money to it before using so that would have been in assets and account type would be bank.&nbsp;If this is a true credit card then it should be in liabilities and account type would be credit card.&nbsp;If you created it incorrectly in assets as a bank account and let's say you owe a $1,000 at the end of the statement period then you need to enter the bank balance as negative $1,000.&nbsp; The main way you would know if my reading of what you may have done wrong is to work out double the actual balance and if that is what you are out.&nbsp;The best thing though would to be creating the account in the correct section of the balance sheet (liabilities) and then going to each entry in the incorrect account, changing the pay from account or receive to account over to the new one you created and then reconciling.&nbsp;Remember to then go and make the incorrect account inactive or delete completely once you have got all entries into the new account.&nbsp;Let me know how you go, or if I have misunderstood your problem.&nbsp;

astrid159 · Answer

Hi Julie,&nbsp;thank you so much for your response.&nbsp;the account is in liabilities already, so i had done that part correctly.im just wondering maybe should i have put the opening balance as something other than $0.00 is this why i can not reconcile?&nbsp;thank you.&nbsp;

julie_a_c · Answer

hi&nbsp;Astrid159&nbsp;&nbsp;Did it start at nil?&nbsp;You can't just enter it in opening balance on the card as that will then show in the balance sheet as historical balancing.&nbsp;You need to tell me how come this account started with a balance other than nil if it is a new credit card.&nbsp;Was it a private card one of the business owners was using for personal and has now decided to use for all business expenses? If so what is the structure of the business? Sole trader. partnership, Company or Trust?&nbsp;

astrid159 · Answer

Hi Julie,&nbsp;the balance did start at nil.&nbsp;so i believe i have done everything correctly and still can not reconcile the account.

genreve_s · Answer

Hi Astrid159,&nbsp;
&nbsp;
I hope you are well today. Thank you for posting your concern in the forum.&nbsp;
&nbsp;
I'm sorry to hear about your reconciliation not balancing. I understand that you mentioned in your previous responses that the credit card was set correctly as a liability account. If this is correct, the only two things that could affect your reconciliation are the opening balances and transactions recorded against that account. As mentioned by Julie_A_C, you will need to check all transactions and compare them to the actual credit card statement transactions for that period to see if all transactions are correct. If the credit card started as nil and the opening balances are recorded as 0, this is the only way forward to know what is causing the out-of-balance.&nbsp;
&nbsp;
Let us know if you require any further assistance with this. We're happy to help.&nbsp;
Thanks,Genreve
&nbsp;

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