A sole proprietor of a team of three, I am a newbie to both Manager and bookkeeping. I don’t see steps in the Guides that tell me in the most simple and basic way how properly to record credit card transactions so that I can understand. Would someone please clarify the procedure so that I don’t make a mess of things from the get-go?
Here’s what I’ve done so far.
- I created a Bank Account for the credit card.
- Under Bank Transactions, I’m unsure whether to record the charges as “Receive” or “Spend” Money. This is where I’m stuck. I’m guessing that the credit card account will “Receive” and that I “Spend” the money from my company checking account to pay the credit card statement. But maybe I have that backwards. I know somehow the two have to cancel each other out. How do I connect the two accounts? What is the proper way to set this up so that I can reconcile my credit card statement?