Credit card reconciliation
Credit card reconciliation is very much like bank reconciliation:
If you get a paper statement from your credit card company, you can follow the manual reconciliation process that we walked through earlier.
If, on the other hand, your credit card company allows you to download the statement in OFX/QFX format, you are in luck. You can go through the electronic reconciliation process that we walked through previously. Just make sure you select the right credit card account to import into when you do the reconciliation for the first time.
Unlike in a bank statement, you will find that there are different types of items on a credit card statement to deal with:
Service charge: Just like you created a separate account under Expenses for Bank Fees, you may want to create a Credit Card Service Charge account under Expenses.
Interest charged: Banks pay you interest, if you maintain a positive balance. On the other hand, credit card companies will charge you interest on the balance...
