Banking and reconciliation
Managing Credit and Prepaid Cards in Bank Accounts
Managing Credit Cards
Setting up Your Credit Card Account
Navigate to the Bank Accounts
: Here, you can establish a new account specifically for your credit card. Make sure to set the account type to "Credit Card."
![Setting up Your Credit Card Account](/_next/image?url=https%3A%2F%2Ffirebasestorage.googleapis.com%2Fv0%2Fb%2Fwafeq-docs.appspot.com%2Fo%2Fmedias%252Fb88bd13f_Screen%20Shot%202023-09-25%20at%205.20.28%20PM.png%3Falt%3Dmedia&w=1920&q=75)
Naming the Account:
Naming the Account:
To easily identify it later, name the account in a way that makes it distinguishable. For example, you could use "HSBC Visa Credit Card ending in 1234."
Recording Credit Card Transactions
Logging Bill Payments: When booking a bill payment in the system, select your Credit Card account as the 'paid-through' account.
Paying Off Your Credit Card Debt
Recording Payments: Whenever you make a payment towards your credit card debt, log a debit in the Credit Card liability account reflecting the amount you've paid.
Classify to Account: This is a critical step. It ensures both a decrease in your bank account balance and a corresponding reduction in the credit card debt you owe.
Managing Prepaid Cards
Setting up Your Prepaid Card Account
Navigate to the Bank Accounts
Module: Just like with credit cards, you'll establish a new account. However, this time set the account type to "Bank."
Naming the Account: For ease of reference, name the account in a way that is easily distinguishable. For instance, "HSBC MC Prepaid Card ending in 1234."
Recording Prepaid Card Expenses
Logging Bill Payments: When recording a bill payment, choose the Prepaid Card account as the 'paid-through' account.
Loading Your Prepaid Card
Record the Addition of Funds: Whenever you add funds to the prepaid card, register a debit in the Prepaid account.
Classify to Account: In this case, you'll select the bank account you're transferring funds from. Doing this will record a credit in that account, denoting the outflow of funds.