Credit card

Greven

Hi,

I'm using a business credit card for purchases related to my business.
Unfortunately the card has a limit of mere 650 euro and I sometimes need to transfer extra money to it before I can place an order.

What is the correct way to track these transfers in my accounts? Do they go immediately into cost with the date of the transfer from regular to credit card account, even though the money will only be spent a few days later?

To make things even more complicated. There were cases where I transferred an X amount of money to the card and then decided not to proceed with the purchase. So I ended up having X euro of credit in the credit card account.

Again, how do I track this in my accounts? I'm thinking I can't put this into cost, as the money isn't gone until much later when I use that credit for other purchases.

Please help

Many thanks,
Michal

BabySlam

Greven wrote: »

Hi,

I'm using a business credit card for purchases related to my business.
Unfortunately the card has a limit of mere 650 euro and I sometimes need to transfer extra money to it before I can place an order.

What is the correct way to track these transfers in my accounts? Do they go immediately into cost with the date of the transfer from regular to credit card account, even though the money will only be spent a few days later?

To make things even more complicated. There were cases where I transferred an X amount of money to the card and then decided not to proceed with the purchase. So I ended up having X euro of credit in the credit card account.

Again, how do I track this in my accounts? I'm thinking I can't put this into cost, as the money isn't gone until much later when I use that credit for other purchases.

Please help

Many thanks,
Michal

Hi, you can record the money from your personal ac as a loan to the business, which increases the business "liabilities" which would show on a balance sheet.