--- title: Reconciling a credit card account in Xero description: Reconciling a credit card account in Xero --- [Skip to content](https://help.1stformations.co.uk/accounting-service/reconciling-a-credit-card-account-in-xero#main-content) [![image 4](https://help.1stformations.co.uk/hubfs/image%204.svg)](https://www.1stformations.co.uk/) - [Help Centre](https://help.1stformations.co.uk/) Open main navigation Close main navigation - [Help Centre](https://help.1stformations.co.uk/) - [Login](https://www.1stformations.co.uk/login/) [Login](https://www.1stformations.co.uk/login/) How can we help you? - There are no suggestions because the search field is empty. 1. [Accounting Service](https://help.1stformations.co.uk/accounting-service?hsLang=en-gb) 2. [Bookkeeping Basics](https://help.1stformations.co.uk/accounting-service/bookkeeping-basics?hsLang=en-gb) 3. [Bank Reconciliation](https://help.1stformations.co.uk/accounting-service/bookkeeping-basics?hsLang=en-gb#bank-reconciliation) # Reconciling a credit card account in Xero ## A guide to reconciling a credit card accounting in Xero If you use a business credit card, it should be set up as a separate account in Xero and reconciled in the same way as your bank account. ### Setting up a credit card in Xero In Xero, go to ‘Accounting’, then ‘Bank Accounts’, and click ‘Add Bank Account’. Select ‘Credit Card’ as the account type. Add your credit card information. If a live bank feed is available, connect it. If not, export the monthly statement as a CSV file and import it into Xero. If you are unsure about how to do this, contact us and we will run through the first month with you. ### Recording the monthly payment When you pay the credit card bill from your business bank account, this is a transfer in Xero between the bank account and the credit card account, not an expense. Use Xero's Transfer Money function to record it. This correctly reduces the bank balance and the credit card balance simultaneously without creating duplicate costs. 💡 **Good to know:** Every cost on the credit card still needs to be categorised with the correct account code and VAT code. The credit card feed imports the transactions; you still need to review and code each one. ### Not found what you're looking for? 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