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A Quick Rundown to QuickBooks Journal Entry
QuickBooks journal entry is an accounting transaction entered or posted directly to General Ledger. A company's general Ledger acts as its main group of accounts that is used to record the balance sheet and income statement transactions. It is a record of transactions that show the credit and debit balance of the Company in simple words. Journal entry is seen to be a very important and crucial part of business accounting, so it is important for you to learn all the information related to journal entries, which will be discussed later in this post.
Easy Explanation of Journal Entry in QuickBooks
Journal Entry in QuickBooks is defined as an accounting transaction that is entered or posted directly to General Ledger. In general, the Ledger of the company balance sheet and income statement transactions are recorded, and journal Entries in QuickBooks help the user adjust or correct the transactions and post the entries that could not be accomplished in any other way. Also, note that the debit must be balanced with the credit when you record journal entries in QuickBooks.
Reasons you should Record Journal Entries in QuickBooks.
Journal entries come with many benefits, and for you to understand them better, we have mentioned some below.
You can manually enter debits and credits like any other conventional accounting system.
Easily transfer money between income and expense accounts.
You can exchange money from an asset, liability, or equity account for an income or expense account.
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Easy Steps to Make a Journal Entry in QuickBooks Desktop
Now that you know what Journal entry is and its benefits let's see how you can make journal entries in QB.
In QuickBooks, tap on Company and then choose Make General Journal Entries.
Edit the Date field if necessary in the Make General Journal Entries.
Fill in other important details like a journal entry in entry No. Field, the general ledger account number In the Account column.
Now, enter the debit and credit amount for the account you selected into the Debit and Credit columns.
Also, note that the debits and credits must be equal so that the entry can be balanced and QuickBooks can post it.
Now in the Memo Column, fill in the memo description.
From filling in the ledger account number to the memo description, repeat the steps until the transaction reaches a zero balance and then move to the next step.
The debit total should be equal to the credit total, which balances the record journal entries in the QuickBooks process.
Now, either choose Save and Close or click Save and New.
Log into QBO to create QuickBooks Online Journal Entry, then click on + New and choose Journal Entry.
Also note that if you are in Business view, switch to Accountant.
Insert the details to create a journal entry, and choose Save and New or Save and Close.
We have mentioned everything you need to know about QuickBooks Journal Entry in the above article; still, if you have some queries related to the above, please call us at +1-855-738-0359 to get help from our technical team.
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