Comments on: What category does a credit card loan go to when the debit is for equipment for your business? http://www.fn-live.com/what-category-does-a-credit-card-loan-go-to-when-the-debit-is-for-equipment-for-your-business.html Loan and Financial Info Mon, 01 Feb 2010 15:06:52 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: GordShumway http://www.fn-live.com/what-category-does-a-credit-card-loan-go-to-when-the-debit-is-for-equipment-for-your-business.html/comment-page-1#comment-338 GordShumway Tue, 06 Oct 2009 18:24:16 +0000 http://www.fn-live.com/what-category-does-a-credit-card-loan-go-to-when-the-debit-is-for-equipment-for-your-business.html#comment-338 Are you using an accounting software package? Your question suggests that you are. If so, there is actually an account type for credit cards. You need to create a new account for that card. You will also need to set the credit card company up as a vendor. Charges to the credit card would initially be booked either to an expense account or a capital account. Then when you start paying off the card, you book everything other than the interest expense to the credit card account. Are you using an accounting software package? Your question suggests that you are. If so, there is actually an account type for credit cards. You need to create a new account for that card. You will also need to set the credit card company up as a vendor.

Charges to the credit card would initially be booked either to an expense account or a capital account. Then when you start paying off the card, you book everything other than the interest expense to the credit card account.

]]> By: Ern http://www.fn-live.com/what-category-does-a-credit-card-loan-go-to-when-the-debit-is-for-equipment-for-your-business.html/comment-page-1#comment-337 Ern Tue, 06 Oct 2009 03:30:22 +0000 http://www.fn-live.com/what-category-does-a-credit-card-loan-go-to-when-the-debit-is-for-equipment-for-your-business.html#comment-337 In my personal business, two things happen. We have surveying crews and we have the equipment they use. I started an LLC for the equipment alone. I then rent the equipment to my company through the LLC. That way if the company gets sued my equipment is safe and vice versa. Hope this helps. In my personal business, two things happen. We have surveying crews and we have the equipment they use. I started an LLC for the equipment alone. I then rent the equipment to my company through the LLC. That way if the company gets sued my equipment is safe and vice versa.

Hope this helps.

]]>