Common Practice Pitfalls & How to Fix it: Categorizing Credit Card Payments as an Expense

Credit Card Payments Should Never Be Captured as an Expense in QuickBooks Online, or any other accounting software.

It might feel like an expense when you pay your credit card… but it’s not.

Why? Because the expense already happened—when the charge was made.
(Remember when you charged that plane ticket on your card, and it was categorized as a Travel expense? It was already counted then.)

Recording the credit cared payment itself as an expense means you’re double-counting, which can throw off your profit, taxes, and financial clarity.

The right way:

• Enter (or match) transactions as they occur on the credit card.

• Record the payment as a transfer from your bank to your credit card—not an expense.

Have questions, need someone to help you untangle a mess, or just want a solid bookkeeper who will take care of all this for you? Schedule a call with me today!