Do you want to create a journal entry in QuickBooks Online? If your answer is ‘Yes’ then, you are on the right platform. Here Accountwizy will provide the simple procedure to create a journal entry in QuickBooks Online to maintain books of accounts for the business easily with QuickBooks accounting software.
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Here, we are going to show you how you can create a journal entry in QuickBooks Online for your business and have your Balance Sheet tallied accurately. You can also share records of your journal entries or records of transactions with other users who are authorized. Have a look at QuickBooks journal entry example – employee/staff and professional accountant, who are given the privilege to access QuickBooks by you.
What is a Journal Entry in QuickBooks
Before moving ahead, you must know what is a journal entry in QuickBooks? In terms of traditional accounting, a journal entry is normally a transaction consisting of at least two parts – a debit and a credit. QuickBooks Online labels the transaction in the form of a Journal in the register or account history. It happens when you record a transaction with a journal entry.
An accounting journal entry is actually a method used to save accounting transactions into the accounting records of a business. Either the accounting records are piled into the general ledger or record journal entries in a variety of sub-ledgers that are later rolled up into the general ledger.
Important Notes for QuickBooks Journal Entry
- A journal entry always contains Debit and Credit columns.
- Assets and liabilities must be maintained in journal entries.
- Profit and loss should be maintained in the journal entries.
- Accounting figures in the Debit column must always tally with Credit column.
Benefits of QuickBooks Journal Entry
Some notable features creating journal entry in QuickBooks Online include:
- Transfer money between Income and Expense accounts.
- Transfer money from an asset, liability or equity account to income or expense account.
- Allows traditional system of accounting, that is, entering debits and credits in a general journal entry or ledger account.
Thus, with these features, you can learn how to make adjusting journal entries in QuickBooks online.
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Steps To Create A Journal Entry In QuickBooks Online
Here is the procedure to create a journal entry in QuickBooks Online, just follow the steps:
- Login to QuickBooks Online on your computer.
- Select the Plus icon (+ New) on the Toolbar.
- Under Other, select Journal Entry.
- Enter the Transaction date in the Journal Date field.
- You may opt to enter a journal number to help identify the transaction in reports or leave it blank.
- Enter any account listed in the Chart of Accounts, on the first distribution line in the Accounts field.
- Accounts: Refers to an account in the Chart of Accounts.
- Journal Code (France only): Enter the journal code associated with the respective account. If necessary, you may add a new journal code. However, you have to use the same journal code that is associated with the transaction for both Debit and Credit accounts.
- Debits or Credits: Generally, the first line is that of Debit. You can find transactions in the Recent transaction report. Also, verify whether Debit was changed according to your preferences or not, after saving the transaction.
- Description (optional): You may enter the description to see details of the transaction on the report.
- Name: Select customer, vendor/supplier or employee associated with the line, if any, in the Name field.
- Note: If you are not sure which account receives the Debit and Credit side of a transaction, it is advised that you consult with your professional accountant for guidance.
- Next, enter the transaction amount in the Debit and Credit columns, respectively.
- You may opt to fill the Description field for the transaction or leave it blank. The description that you enter will appear on reports that display transaction details.
- Make sure that entries on the Debit and Credit columns must tally. If, however, the columns do not tally, continue to enter distribution lines until the sum of entries in the Debit column equals the sum of entries in the Credit column.
Note: When the Classes and Locations feature is turned on, additional fields will appear.
- You may opt to select Make recurring to set a recurring journal entry schedule.
- Click the Save button to save the changes you have made to create a journal entry in QuickBooks Online.
We hope, now you are clear about the QuickBooks journal entry. This is a very important step to manage the books of the business accounts of the business. Still, you need more clarification regarding this topic or need any help to create a journal entry in QuickBooks Online, you can connect with our Accountwizy ProAdvisor for instant response.