cover_2

Tracking credit card payments & avoiding double entry

Managing your finances effectively means forming the habit of tracking your income and expenses continuously so that you know at all times what your financial situation is. If you are doing this already, you should be proud of yourself! We definitely are.

Just to make sure your balance is accurate while doing this, let’s see how you can keep track of credit card payments without entering them twice, that is the first time when you use the credit card for a purchase and a second time when you pay the CC bill that includes that charge.

To maintain the principles of simplicity we built the app on we haven’t separated your accounts for cash, bank and CC. To avoid a double-entry you can simply continue entering your expenses when you make each purchase, and enter only your interest charges and other fees (e.g. late payment fees) when you get your credit card bill. Create a new expense category for “Credit card charges” and set a recurring transaction with a reminder for a one dollar value, which you can change later on when you get your bill.

1. CC Charges

Thus, the amount you’ll enter will represent only the fees you have to pay, without the purchased items. Double-entry eliminated and an overview of the interest you are paying will be shown in your “Expenses” chart as well.

2. Expenses view CC charges

You can also add notes (eg. “payed with CC” / “Credit card” / “CC”)  to your transactions and see in your calendar view which items you purchased with a credit card:

CC Interest_a

If you would like to see in the “Expenses” chart your credit card purchases separately from other transactions, then the best option would be to create a new category with the name of e.g. “Credit Card Purchases”. However, you’ll only see an aggregated display of these purchases in the “Expenses” chart, not broken down by categories.

5. CC Purchases

Start putting your money where it matters!