The toughest task in any business is to manage to account. It is complicated and entering wrong Accounting transactions or committing any mistake in accounting can lead to a serious loss in any business. QuickBooks is the best software to manage your business finances, accounting, and bookkeeping. It is listed as one of the best software to manage bookkeeping and accounting tasks smoothly reducing human efforts. And in this article we would learn more about the software including QuickBooks Journal Entry and its features.
With advanced features that are exclusively developed by Intuit to ease the process of business doing, QuickBooks helps in daily transaction entry and creates journal entries automatically. But sometimes, users unintentionally enter incorrect accounting transactions which make users change the original transaction that already has been recorded. Don’t worry, users can make journal entries in QuickBooks in an easy manner. It can help users to correct the transactions and write entries.
Well, if you are unclear about what is a Journal Entry, then let us explain to you in brief. A journal entry basically is a transaction entered in your Business’s general ledger. Journal entries mean recording data manually in the original transaction that has been recorded.
Here, you will read everything about topics related to Journal Entries in QuickBooks like- how to make journal entries in QuickBooks, Adjusting journal entries in QuickBooks, how to view journal entries in QuickBooks, how to find journal entries in QuickBooks, and more.
QuickBooks Journal Entry and its Types
In order to understand the information mentioned in our article, it is important to understand what is QuickBooks Journal Entry?
In QuickBooks, Journal Entries records transactions that mean keeping a record of amount transfers between accounts. It consists of two types
The rule is that both credit and debit should tally. Income statement transactions and Balance Sheets are recorded by the Company’s general ledger because it acts as the main group of accounts.
Journal Entries used in accounting are:
- Compound Entry
- Simple Entry
- Closing Entries
- Opening Entry
- Transfer Entries
- Rectifying Entries
- Adjustment Entries
Journal entries are used for doing various important accounts related work like:
- Transferring money
- Entering credits and debits
- Adjusting Entries
- Capital Contributions
- Interest on Loan Accounts
- Purchasing Assets
- End of financial year Adjustments
Rules to Follow while making Journal Entries
- Don’t make journal entries to Payroll or Inventory Accounts.
- Include one Accounts Payable or Accounts Receivable type account per entry.
- On the second line of Journal Entry, use Accounts Payable or Accounts Receivable type account.
- Put the customer or vendor on the first line of the Journal entry.
- Multi-currency in a single Journal Entry is not supported by QuickBooks Online. There is a separate Journal Entry for each currency.
- If a user wants to make changes in the transaction after creating an entry then he/she will have to delete and reverse the Journal Entry.
- Make sure, you have a line for A/R or A/P with the name of vendor and customer to reflect on sales/expense tab.
Steps to Create a QuickBooks Journal Entry
- Go to the Company and then click on the Journal Entry option.
- A new window will be opened in which you will be asked to fill in the required details.
- Fill correct date and Journal Number.
- In the Entry Number Field, enter Journal Entry Number.
- In the Account column, fill the account number of the general ledger.
- Now, look for Debit or Credit columns, and fill the amount for your account. Make sure to make the debit and credit equal in order to make the entry balanced.
- Now go to Memo Column and a descriptive memo to display it on the reports including this Journal Entry.
- Continue the last two steps above this line until the Debit Column and Credit Column contain the equal total.
- Save and close the window.
How to Create a QuickBooks Journal Entry Report
We have discussed how to create a QuickBooks Journal Entry in the most simple language. What is more interesting is that a user can also create a report in QuickBooks Online to manage and track journal entries.
- To open the journal report, all you have to do is go to Reports and Open the journal.
- Press on Customize in order to show the report for journal entries only.
- In Transaction Type select Journal Entry. These steps will lead you to run the report.
Print a Journal Entry
If you want to print single journal entry, then the below mentioned steps should be followed:
- Go to the Search icon on the screen and choose Advanced search.
- Fill your journal entries. Add a Reference number as it will narrow down the search.
- Press on the Search tab and select the Journal entry of your choice.
- Select More and select the Transaction journal shown at the bottom of your screen.
- Click on the Print icon to print the journal.
In order to print multiple journal entries on a single report, the below mentioned steps should be followed:
- Click on Reports from the left menu.
- Look for the Journal entry in the Search bar.
- Click on Customize and enter the desired details.
- Select Run report.
- Choose the Print icon and print your report.
- A user has to click on the Export icon in order to export the report as an excel or as a PDF.
How to Delete a Journal Entry if created by Mistake
If you have created a journal entry by mistake and want to delete it. Then follow the steps mentioned below. But remember that this is a permanent delete option and you will not be able to recover the journal entry after you apply these steps.
- Open QuickBooks and then Settings.
- Select Charts of Accounts.
- Go to the Relevant account.
- From the Action column, go to the View Register.
- Choose the Journal entry you want to delete and press the tab on the Delete option.
- The screen will prompt you to confirm and approve, press OK.
We hope we have helped you by giving all the relevant information about Journal entries in QuickBooks. By now you must have understood how to create, edit, print, and delete Journal Entry in QuickBooks.
It is very important to know how to do a Journal Entry in QuickBooks on your own to correct or rectify the transaction record. These steps should be followed in proper sequence then only a user will be able to create, edit, print, and delete Journal entries without any trouble. If you have any suggestions then do tell us in the comments section.