I am switching over from QB and very much like Manager. I have read the guides and posts but still do not understand how to do this. I have a little knowledge of basic bookkeeping but know QB well enough. I want to be able to:
enter manually credit card expenses such as cell phone, travel. entertainment, etc. I have created these in the chart of accounts (I use one credit card for business and personal)
After recording these, paying the credit card bill from checking. These are regular expenses and not billable.
This guide can help answer your question: https://www2.manager.io/guides/7035
@Sg_Papa have you tried
- creating a bank account for your credit card in Manager
- bank import your credit card statement
- bank rules for your repeat transactions
- inter account transfer for your credit card payment
Combining work and personal expenses in one account dramatically increases your bookkeeping work. Transactions must be classified as work or personal and the most efficient time to do this is when you make a purchase. Doing it later when going through your bank import is possible but it is slower and less accurate.
The alternative is manually entering the few credit card business transactions you do.
In addition to @Patch comment regarding complications of using a credit card for both business and private. Please note that if the credit card is registered to the business it may violate the terms and conditions of your card agreement. This can result in the closing the business account, revert to personal liability rather than business one for defaults, tax implications when not separating the private and business expenses well enough, and most annoyingly a more complicated bookkeeping that could negatively impact on your personal and business credit.
Thanks to all for the replies. Our business is small now as we are near retirement. We only have about 10 CC transactions per month which I can manually enter into the credit card section (it is a personal CC that we also use for business. I read many of the posts here and still do not quite understand. InQuickbooks we would:
Enter the CC charges under the QB module. This would create a liability. Then to pay we would “write a check” and that’s it. I know there are different steps in Manager which is what I want to learn. Any comments, preferably with a simple example, would be very much appreciated
What business bank accounts do you have and what do you use these accounts for?
What account does income from the business go into?
The same is true in Manager. If you read the Guide linked above, you saw that you have two options. If you choose the liability option—which I personally recommend—a liability is created directly. If you choose the contra asset option, a contra asset is created. But that is financially identical to a liability.
The same is true in Manager. Post the payment to the credit card account, regardless of whether you classified it as a contra asset or liability. Either way, the program will post the debit correctly. (The corresponding credit goes to the bank account from which you wrote the check.)
The only non-intuitive part of this is setting up the credit card account in the first place. But that is illustrated in the Guide already linked. The payment is like any other payment, examples of which are also provided in the Guides on payments.
We have a checking and savings account. We use the checking account to pay bills and receive funds.
Income is from commissions and occasionally sale of non-inventory goods.
So am I correct in assuming
- most of your business transactions are via the checking account
- Most of your business savings are in the Savings account
- Occasionally you make business purchases with your personal credit card and need to show them in your business books
I handle this type of credit card expense by making an electronic transfer from my business working account to my personal work account on the same day I buy something on a personal credit card. When I later do a bank import of my business work and savings account, it then includes the transactions done via the personal credit card.
The alternative is to create a credit card account in Manager and manually enter the credit card transactions there. You will also need to intermittently pay the credit card transactions (even if it is to owners equity) and you will not be able to reconcile the account as you are not entering all transactions.
Thanks for your reply. Assumptions are correct.
I did this and set up a control (liability) account. My question is how is this done in Manager?
I have a demo company established. Via receipts I entered 2 charges dated May 31. Today, June 18 the summary shows, under expenses these 2 charges but in negative. The P&L also shows negative () The balance sheet shows the Credit Card under liabilities but has no amount and only a -. After using inter account transfer to “pay” the CC, it does not change. I would basically like to know the correct way to manually enter CC charges so they appear as liabilities until paid.
Just to be clear. Although the credit card amount is shown as liability they should balance with expenses in the profit and loss account. Clearing of the credit card liability is done with an asset account in this case your bank account.
So not sure about what you are asking here.
Just how to enter manually the credit card expenses.
Set up credit cards | Manager
In particular,
Because most transactions will post to this account from New Payment transactions
But you should learn how to search the guides before asking a question here - www2.manager.io/guides