Manage your credit card in Xero
A guide on how to manage your business credit card or personal credit card with business purchases in Xero.
Manage your business credit card
- Add your credit card as a bank account.
- Enter an opening balance for your credit card.
If you're setting up a replacement credit card, create a Transfer money transaction to transfer the remaining balance from your old credit card to your new one.
- Set up a bank feed to receive your credit card statement lines directly into Xero. Or if bank feeds are not available, import your statement manually.
- Reconcile your credit card account. If you use your business credit card for personal use, seek the advice of your accountant or bookkeeper on how to code these transactions. They may not always be allocated to your ‘drawings’ account.
Manage your personal credit card with business purchases
Use an expense claim
If you've used your personal credit card to buy goods for your business, you can use an expense claim to record these purchases in the correct reporting period. You can then either:
- reimburse your personal credit card from your business bank account for the business items you bought, or
- code the purchase to an equity account to show the spending as owner funds introduced (in Xero there's a default account 'Owner Contributions'). Do this by choosing the relevant account when paying the expense claim.
Add your personal credit card to Xero
If you're using a personal credit card and most of the purchases are business related, you could set up a credit card account in Xero. Whenever you spend money from this account, select the drawings or personal use account from your chart of accounts.