How to Add Credit Card Processing Fees in QuickBooks?

Managing credit card processing fees is an essential aspect of financial tracking for businesses. QuickBooks, a popular accounting software, provides a straightforward method to incorporate credit card processing fees into your financial records. Here, in this post, we will discuss how to Add Credit Card Processing Fees in QuickBooks.

Set up an Expense account for Credit Card Processing Fees:

a. Go to the Chart of Accounts: Click on the Gear icon in the top right corner and select "Chart of Accounts."

b. Click on "New" to create a new account.

c. Choose the Account Type as "Expense" and the Detail Type as "Other Miscellaneous Expense."

d. Give a suitable name for the account like "Credit Card Processing Fees" and save it.

Create an item for credit card processing fees:

a. Go to the Lists menu and select "Item List."

b. Click on "Item" and then select "New."

c. Choose the Type as "Service" or "Other Charge" (depending on your preference). d. Provide a name for the item like "Credit Card Processing Fees."

e. Under the Account drop-down, select the Expense account you created in step 1. f. Enter a suitable description for the item (optional). g. Save the item.

Apply credit card processing fees to transactions:

a. When recording a sales transaction:

i. Create an invoice or sales receipt as you normally would.

ii. Add the items for the products or services sold.

iii. Add a line item for the credit card processing fees using the item you created in step 2.

iv. Enter the appropriate amount for the fees.

v. Save the transaction.

b. When recording an expense transaction:

i. Create an expense transaction (e.g., a check or an expense form).

ii. Enter the necessary details for the expense.

iii. Add a line item for the credit card processing fees using the item you created in step 2.

iv. Enter the appropriate amount for the fees.

v. Save the transaction.