Ah this is a life saver of a video. Chase Corporate card with multiple cards was driving me nuts with the running balance on the sub accounts only goin up !! Thanks you so much for posting this. It took watching it 3 times before I totally had it!!
Thank you Seth, that was super helpful! I am having a fantastic day :) I'm thinking now, the new "pay credit card" function, or even "transfer funds" may be an alternative to journal entries!
Thank you! I'm so glad you found this helpful! Have a look at this one too! It should give you some great ideas about how to use a "credit card" account in some creative ways 😉 If You Mix Up Personal And Business Expenses In QuickBooks Online th-cam.com/video/XbbbFcVGoTA/w-d-xo.html
I started a job that requires credit card parent and child account reconciliations.. never done it. 2 ppl from work showed me 2 different ways but it didn't look this easy. They reconciled the child account first then the parent. I know it involved Unmatching then Deleting transactions from the child account register, not sure if it was a Charge or Payment!! Both accounts are connected to the bank so the transactions are imported automatically. When I reconciled the parent account there is still a balance in the sub-accounts. I've only reconciled bank account and new to this. I am still struggling but will go back to this video next month and try to follow. Thank you for this video!
Thank you! I didn’t realize you need a “Master” account under the Parent account. I though the parent could function like the master but that didn’t work.
Thank you for this! I have been struggling with this issue with a company. . . closed the child accounts and just have two master accounts yesterday in quickbooks because I didn't understand this process. Was working on getting the clients to close the child accounts on the bank side. . . . sigh. You must have been feeling my pain when you posted this!
Bear w/ me, this may be a dumb question - I'm taking on a new account and they have a master cc and 2 sub-accts - all were set up in QBO over a year ago w/ feeds from the bank. So the cc accnts in QBO have many transactions. Can I follow the steps in the video and set up a new Parent - if I do so will all the past transactions appear in that parent acct - or will only those charged after the date the parent accnt is set up? Trying to figure out if this solution will work mid-stream! thanks!
Not a dumb question at all. You can do this, but if the accounts were reconciled, you'll need to undo the reconciliations, and then redo them based on reconciling the master (parent) account. When you create the new parent account, you will next move all of the existing credit cards under that one as sub accounts.
I always complete all entries before I reconcile. These closing entries will offset one another in the reconciliation, so you'll want them in there first. Then you can check them off on both sides along with the rest of the transactions that cleared in that period.
Thanks for this! Question: is it pertinent to set up the accounts this way? Or would things essentially work the same if we only connected the bank feed to the parent account?
Hi, since all the feeds go to the subaccounts as well, do we reconcile those two besides the Journal entry? All the entries are in the Master (which is great) but all the transactions are sitting in the subaccounts as well. Do I just leave them there? I'm confused on that part..
No, you close out whatever balances are in the sub-accounts to the parent account. If there is no payment that just means the balance will have only increased from the prior month.
@@nerdenterprises another question on closing out the sub-accounts; do you use the register balance for the journal entry amount or the balance showing on the statement?
@@user-ud2ub8nr5o I use the balance as of the end of the month from the Balance Sheet. Ultimately it's the balance sheet that you want to reflect $0.00 in all the sub-accounts.
Hi, Thank you for this video!! I have a questions. I was able to set up a credit card with sub accounts but the master is the main account and I have not been able to reconcile since 2022. Am I able to set up a factious account and still have the accounts I have now under them? Will it mess anything up?
Hi! If you set up the actual Master account as a sub-account of a different parent account, then you should be able to clean up and reconcile that master account by itself. So your master account would be at the same level as the other subs, all of them underneath the same parent account. That parent account will never get linked to any bank feeds. It's just a place to hold all of the subs. Everything else works the same - payments still go to the master, because that's where the credit card company will show them.
I set up the master account as the main account and have 4 sub accounts under it. Can I create a parent account and move them to it or is there a way I can journal entry it to make it balance? @@nerdenterprises
Thank you for this but I am having a some issues. The totals are coming up in the master account as well as the fictitious account. Also the children arent rolling into the master after I do the journal entry. Please help!
The totals should show up in the master account. The represent the total of all of the sub-accounts plus anything posted directly to the master account. Once you post the journal entry, the child accounts should be zero and the master account should show the same total because the net effect to the master is $0.00.
@@nerdenterprises thank you for the quick response. I was able to fix the totals, to rec, but still having an issue with zeroing out the child accounts after journal entry. I see the journal entry in the register but it is like it is being ignored in the report. Got to love quickbooks :)
@@jpaglts The only way they wouldn't zero out is you are (a) not using the correct amount (it has to be for the exact balance) or (b) not posting the journal entry in the right period (it has to be in the same month, ideally on the last day).
This was exactly what I was looking for. Thank you so much!
So glad this helped!
Ah this is a life saver of a video. Chase Corporate card with multiple cards was driving me nuts with the running balance on the sub accounts only goin up !! Thanks you so much for posting this. It took watching it 3 times before I totally had it!!
So glad this helped!
You just saved me so much trouble. Been scratching my head over this for hours
Thank you Seth, that was super helpful! I am having a fantastic day :) I'm thinking now, the new "pay credit card" function, or even "transfer funds" may be an alternative to journal entries!
Thank you! I'm so glad you found this helpful!
Have a look at this one too! It should give you some great ideas about how to use a "credit card" account in some creative ways 😉
If You Mix Up Personal And Business Expenses In QuickBooks Online
th-cam.com/video/XbbbFcVGoTA/w-d-xo.html
I started a job that requires credit card parent and child account reconciliations.. never done it. 2 ppl from work showed me 2 different ways but it didn't look this easy. They reconciled the child account first then the parent. I know it involved Unmatching then Deleting transactions from the child account register, not sure if it was a Charge or Payment!! Both accounts are connected to the bank so the transactions are imported automatically. When I reconciled the parent account there is still a balance in the sub-accounts. I've only reconciled bank account and new to this. I am still struggling but will go back to this video next month and try to follow. Thank you for this video!
THANK YOU!!! You just saved my life. 🙇♀
Thank you! I'm so glad this helped.
Thank you for the video! very helpful
Thank you! Glad this helped!
very helpful. Thank you!
Thank you!
Awesome, as always! Thank you!
Thank you! I didn’t realize you need a “Master” account under the Parent account. I though the parent could function like the master but that didn’t work.
Thank you for this! I have been struggling with this issue with a company. . . closed the child accounts and just have two master accounts yesterday in quickbooks because I didn't understand this process. Was working on getting the clients to close the child accounts on the bank side. . . . sigh. You must have been feeling my pain when you posted this!
Nice! I sat down to produce something and was shocked I had not covered this already, so here it is!
Very helpful! Thank you!
Thank you!
Thanks a lot!
Thanks for the info! Very helpful!
Bear w/ me, this may be a dumb question - I'm taking on a new account and they have a master cc and 2 sub-accts - all were set up in QBO over a year ago w/ feeds from the bank. So the cc accnts in QBO have many transactions. Can I follow the steps in the video and set up a new Parent - if I do so will all the past transactions appear in that parent acct - or will only those charged after the date the parent accnt is set up? Trying to figure out if this solution will work mid-stream! thanks!
Not a dumb question at all.
You can do this, but if the accounts were reconciled, you'll need to undo the reconciliations, and then redo them based on reconciling the master (parent) account.
When you create the new parent account, you will next move all of the existing credit cards under that one as sub accounts.
Do you reconcile the Parent account first. Then do the JE to close out the Sub and master account or should the Master account have a balance shown?
I always complete all entries before I reconcile. These closing entries will offset one another in the reconciliation, so you'll want them in there first. Then you can check them off on both sides along with the rest of the transactions that cleared in that period.
Thanks for this! Question: is it pertinent to set up the accounts this way? Or would things essentially work the same if we only connected the bank feed to the parent account?
The problem is the sub-accounts will have their own bank feeds so you wouldn't be able to download the transactions without having them all in there.
Hi, since all the feeds go to the subaccounts as well, do we reconcile those two besides the Journal entry? All the entries are in the Master (which is great) but all the transactions are sitting in the subaccounts as well. Do I just leave them there? I'm confused on that part..
When you journal the sub-account balances to the master every month it keeps them cleared out. No need to reconcile them.
@@nerdenterprises Thanks!!
What happens when you don't make a payment on the card. Do you leave the journal entry out for that month?
No, you close out whatever balances are in the sub-accounts to the parent account. If there is no payment that just means the balance will have only increased from the prior month.
Thank you so much for the quick reply. This was a great video; super helpful @@nerdenterprises
@@nerdenterprises another question on closing out the sub-accounts; do you use the register balance for the journal entry amount or the balance showing on the statement?
@@user-ud2ub8nr5o I use the balance as of the end of the month from the Balance Sheet. Ultimately it's the balance sheet that you want to reflect $0.00 in all the sub-accounts.
Hi, Thank you for this video!! I have a questions. I was able to set up a credit card with sub accounts but the master is the main account and I have not been able to reconcile since 2022. Am I able to set up a factious account and still have the accounts I have now under them? Will it mess anything up?
Hi!
If you set up the actual Master account as a sub-account of a different parent account, then you should be able to clean up and reconcile that master account by itself. So your master account would be at the same level as the other subs, all of them underneath the same parent account. That parent account will never get linked to any bank feeds. It's just a place to hold all of the subs. Everything else works the same - payments still go to the master, because that's where the credit card company will show them.
I set up the master account as the main account and have 4 sub accounts under it. Can I create a parent account and move them to it or is there a way I can journal entry it to make it balance? @@nerdenterprises
Thank you for this but I am having a some issues. The totals are coming up in the master account as well as the fictitious account. Also the children arent rolling into the master after I do the journal entry. Please help!
The totals should show up in the master account. The represent the total of all of the sub-accounts plus anything posted directly to the master account.
Once you post the journal entry, the child accounts should be zero and the master account should show the same total because the net effect to the master is $0.00.
@@nerdenterprises thank you for the quick response. I was able to fix the totals, to rec, but still having an issue with zeroing out the child accounts after journal entry. I see the journal entry in the register but it is like it is being ignored in the report. Got to love quickbooks :)
@@jpaglts The only way they wouldn't zero out is you are (a) not using the correct amount (it has to be for the exact balance) or (b) not posting the journal entry in the right period (it has to be in the same month, ideally on the last day).
@@nerdenterprises ah that would be it. I am posting it now, and the rec etc is for two months ago. Thank you again for all your help!
@@jpaglts I do stuff like that ALL the time. You are not alone 😜.
Glad I could be useful today!