Credit Card Reconciliation
In any new business, these can be your best friend.
They can also be your worst enemy!
The one thing all new businesses need is 'start up' cash to get things up and running. Unless
you start a business with sufficient capital behind you, you won't have that 'start up' cash
until you start making money. But you need computers. Office supplies. Phone systems.
Software. Inventory. The list can go on and on. New businesses often rely on their
personal monies to fund business 'start up' costs, including charging items on their personal
credit card.
And it doesn't stop there.
Once your business is established, most will apply for a company credit card to be used for
business purchases only. But....are those business and personal credit card charges being
booked as legitimate expenses for your business? Are you sure if merchandise being charged
on your personal card is passed onto the customer via an invoice? Not properly booking
these expenses and failure to pass the cost (and markup!) will result in an understatement of
expenses and income.
Checks & Balances Bookkeeping Services will ask you to detail what business expenses
have been paid for personally (either by cash, check or credit card) and be sure they are
booked as an expense to your business. We will also keep track of company card purchases
(included dreaded finance charges, late fees and interest) and will flag any purchases made
which are billable to the customer. When done properly, each month the ending balance on
your credit card should match the balance in Quickbooks.
Want to know more??? Contact us today!
They can also be your worst enemy!
The one thing all new businesses need is 'start up' cash to get things up and running. Unless
you start a business with sufficient capital behind you, you won't have that 'start up' cash
until you start making money. But you need computers. Office supplies. Phone systems.
Software. Inventory. The list can go on and on. New businesses often rely on their
personal monies to fund business 'start up' costs, including charging items on their personal
credit card.
And it doesn't stop there.
Once your business is established, most will apply for a company credit card to be used for
business purchases only. But....are those business and personal credit card charges being
booked as legitimate expenses for your business? Are you sure if merchandise being charged
on your personal card is passed onto the customer via an invoice? Not properly booking
these expenses and failure to pass the cost (and markup!) will result in an understatement of
expenses and income.
Checks & Balances Bookkeeping Services will ask you to detail what business expenses
have been paid for personally (either by cash, check or credit card) and be sure they are
booked as an expense to your business. We will also keep track of company card purchases
(included dreaded finance charges, late fees and interest) and will flag any purchases made
which are billable to the customer. When done properly, each month the ending balance on
your credit card should match the balance in Quickbooks.
Want to know more??? Contact us today!
