As we know, QuickBooks is a secure and reliable accounting software allowing users to record and see their business transactions, so it is important to generate a complete record of transactions to maintain perfect account management. In this blog, we are going to discuss the procedure to make and view adjusting journal entries in QuickBooks. If you also want to collect more basic information, then read this blog carefully.
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Additionally. You are required to change your original transaction when the transaction is categorized into two multiple sections of general ledger accounts. Stay connected with us to get the informative details based on your query. We have covered Generally Asked Questions of users to offer valuable solutions. Before proceeding for the process, let’s have some knowledge regarding journal entries in QuickBooks to make the new users comfortable.
What Is Journal Entry
We can say “A Journal Entry consists of all accounting and financial transactions posted and entered directly through General Ledger”. For recording the balance sheet and Financial income statements transactions a company General Ledger is treated as the main group of accounts.
To provide complete knowledge, I have an illustration for you, Suppose In your company expense insurance account you manually put the details $100 per month utility accidentally. Later on, you have entered the details specifying adjusting the journal entry for reducing and crediting the insurance expense account by $100 and more. And, on the other hand, debit the utility expense account with the same amount for balancing and correction of error issues. Both of your credit and debit accounts are now balanced, there is no need to adopt the changes in the amount owed by the vendor because the proportion of transaction will be recorded properly.
What are the Reasons to Make and View Adjusting Journal Entries in QuickBooks
Before start talking about the reasons, Know the important point you must keep in mind that you can easily view adjusting journal entries in both particular and customized reports for identification of adjusting General entries. Here, you can learn the basic reasons “why you have to Make and View Adjusting Entries in QuickBooks”. Take a look at those reasons:
- For booking the depreciation and amortization
- To cancel the charges of outstanding property or assets or any expenses
- To enter Bank and Credit card fees or interests
- For the adjustment of tax payables for discounts, interest, and fines
Steps to Make an Adjusting Journal Entry in QuickBooks
To make an Adjusting Journal Entry you have to follow simple and basic instructions. These are:
- First of all, Visit the “Toolbar” and open it for selecting your customer file from the drop-down list. Then “Go to Client’s QuickBooks”
- Choose + New Option
- After that Pick “Journal Entry”
- Check out other option indicating “Is Adjusting Journal Entry” CheckBox
- Go through the steps and instruction for successfully creating the journal entries
- In the end, Hit “Save and Close” to complete the process
Note: The identification and recording of Journal Entries will remain the same as adjusting journal entries in QuickBooks.
Steps to View an Adjusting Journal Entry in QuickBooks
In the following reports, you will get a detailed description to view adjusting Journal entries in QuickBooks.
- Adjusting Journal Entries
- Adjusted Trial Balance
To fulfill the purpose of customizing the particular reports you will have to turn on an Adj column.
- Journal(By default for accountant users to see the Adj column)
- Details of Transactions by Account(By default for accountant users to see the Adj column)
- Transaction List by Date
- Transaction List by Splits
- Recent Transactions
- General Ledger
To Review a Report
In reviewing a report, the report will appear in the adj column. Follow these simple steps to reviewing a report. These are:
- From the left menu, choose “Reports”
- After that visit, the “Accountant Reports” Tab or you can manually enter the name for browsing the report through the search bar
- Open the reports by clicking on it to see from the results
- For adding the Adj column to the report you will have to choose “Customize” and click on it. Later on, Choose the “Change Column” item from the Rows/Column Section.
- Choose “Run Report”
We hope, this article will be very helpful for you, and now you will be able to make and view adjusting journal entries in QuickBooks. But if in case, you have any kind of doubts regarding this article then you can contact our Proadvisors just to get support and assistance and make your session more interactive through the toll-free number +1-877-715-0222.