What is a credit card account? | lessaccounting

What is a credit card account?

A credit card account is a financial account that you owe money to. It can be an actual credit card, or even a loan, or any "liability" account.

You can mark a financial account as a credit card account by doing the following:

  1. Go to Settings, then Configure next to the account you want to edit.
  2. Click "Mark this as a credit card account" and check the box that says "This is a credit card account"

Why do I have to mark it as a credit card account? Two reasons: 1) Credit cards are liability accounts and marking them as such will ensure they are properly recorded on your reports such as your Balance Sheet. 2) Credit card balances are often shown as positive numbers on your statements, but they really ought to be negative because it is money owed. Marking an account as a credit card account will make the balance negative and ensure your balances are correct.