Newbie QB User, Handle the same way you do a check you write: use the write a check option in QuickBooks. (Never use the check register to post a check.) Instead of using a check number we type the word Debit. If you're asking what general ledger account to post those transactions/checks to, that depends on what you purchase. If it's things like ink, pens, paper, etc. post to Office Supplies. If it's a piece of office equipment, post it to Expensed Office Equipment. Newbie, check out our blog posts about how to set-up a good Chart of Accounts: http://www.quicktrainer.biz/Blog/?PostID=5923 http://www.quicktrainer.biz/Blog/?PostID=5928 http://www.quicktrainer.biz/Blog/?PostID=5934 Call us if you have anymore questions.

We use a debit card for purchasing some office related items. What is the best way to handle these transactions, in terms of keeping track of where this specific money is being spent? I hope you understand my question.

I'll never enter my credit card charges under one anymore! This really helps me see my expenses more clearly. Thank you, Jim!!!

Good question Sherry! I'll address your specific question and also state some additional reasons why QuickBooks credit card tracking is the way to go: 1) When you enter a credit card charge, the expense reflects on the P&L regardless if you are viewing the P&L on a cash or accrual basis. In other words, you recognize the expense immediately. If you enter a bill, and are viewing your P&L on a cash basis (or better yet, filing a year-end tax return), you would not recognize the expense until the bill has actually been paid via Pay Bills in QuickBooks. 2) Entering credit card charges in the proper manner allows you to more easily track the credit card activity. If all credit card charges are entered as they occur, then when the credit card statement arrives, you can truly reconcile the credit card activity more easily ensuring the credit card charges are legitimate. Think of it like this; you would not wait (at least, we hope not) until your bank statement arrives before checks and deposits are entered. Furthermore, you would not enter one check allocating all check activity to various general ledger accounts. Rather, you would enter each check to reflect to whom and what the check was actually written for. 3) Entering all credit card activity allows you to easily reflect when a purchase is returned and ensure the return is recorded back to the proper general ledger account. I do realize you can accomplish this same thing via a bill, but it's easier to omit return activity if you are entering all summary activity on a bill. 4) From a GAAP (Generally Acceptable Accounting Principles) compliant perspective, utilizing the credit card tracking method I describe, in my opinion (and many others), is the way to go.

How does this way of tracking Credit Card transactions effect the over all picture...P&L verses putting it in as a bill?