Recording credit card transactions can be tricky, but the golden rule in Taxumo is simple: Record what you bought, not how you pay the bank.
The Core Rule: Do not record credit card payments as expenses.
Credit card payments are simply settling a balance you already owe; they are not new expenses. Recording both the purchase and the payment would lead to "double-counting," which makes your expenses look higher than they actually are.
Do vs. Don't: A Quick Guide
Action | What to do | Why? |
When you buy something | DO enter the specific item (e.g., Laptop, Office Supplies) in your Cashflow on the date of purchase. | This is the actual expense that is deductible for your taxes. |
When you pay your bill | DON'T enter the payment to the credit card company as an expense. | You already recorded the expense when you made the purchase; this step is just a bank transfer. |
A Concrete Example
Imagine you bought ₱5,000 worth of office supplies on October 15 using your credit card. You then paid your credit card bill on November 5.
On October 15: You enter ₱5,000 as "Office Supplies" in Taxumo. This is your tax-deductible expense for October.
On November 5: You do nothing in Taxumo. Paying the bank does not change your taxable income.
Still a bit confused?
If this still feels a little technical, don’t worry! Just focus on recording the actual items or services you bought, and Taxumo will take care of the rest.
If you’re unsure about a specific transaction, feel free to reach out to our support team through the chat bubble—we’re happy to help!