Lesson 7: Credit Card Expenses
This is the last lesson of the crash course. We hope you've been getting a lot out of these lessons! This final lesson will briefly introduce some tips related to credit card expenses.
Surely a wise Mayor like yourself might start to wonder: if you use a credit card to make purchases and track these in the app, then use cash to pay off the credit card bill the following month, won't this cause duplicate expenses in the app?
If you use both of the methods below to track these kinds of expenses, it's true that you may in fact face this kind of situation! For this reason, we suggest you select one or the other method and stay consistent! You could choose either one of the following methods:
- Track expenses when you make the purchase (accrual)
- Track expenses when you pay off the bill (cash basis)
For example, if you use a credit card to buy a new hairdryer for $20 on 2/15 and need to pay the bill by 3/5, using the cash basis method you wouldn't track this expense until it is actually paid for, i.e. on 3/5. However, using the accrual method you would record this expense immediately on 2/15 and make use of the Credit Card account function in the app to keep track of how you paid for the item.
Once you've gotten used to the method of your choice, you won't have to worry about duplicate expenses being tracked in Fortune City!