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Astrid159's avatar
Astrid159
10 months ago

New credit card

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!!

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  • Julie_A_C's avatar
    Julie_A_C
    Partner
    10 months ago

    Hi Astrid159 

     

    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.

     

    If this is a true credit card then it should be in liabilities and account type would be credit card.

     

    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.  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.

     

    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.

     

    Remember to then go and make the incorrect account inactive or delete completely once you have got all entries into the new account.

     

    Let me know how you go, or if I have misunderstood your problem.

     

    • Astrid159's avatar
      Astrid159
      10 months ago

      Hi Julie,

       

      thank you so much for your response.

       

      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?

       

      thank you.

       

      • Julie_A_C's avatar
        Julie_A_C
        Partner
        10 months ago

        hi Astrid159 

         

        Did it start at nil?

         

        You can't just enter it in opening balance on the card as that will then show in the balance sheet as historical balancing.

         

        You need to tell me how come this account started with a balance other than nil if it is a new credit card.

         

        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?