How to Record Journal Entries in QuickBooks

Accounting transactions can get entered incorrectly into an accounting system, or maybe a transaction needs to have been divided into two different general ledger accounts, as an example.

Either way, at these times you need to make changes to your original transaction after it has been recorded, and you will try this easily in QuickBooks accounting software by simply making a journal entry.

You could make journal entries in QuickBooks to regulate or correct transactions and post entries that simply cannot be performed in other ways, such as for instance adjustments to profit or loss.

The journal entry process is rather straightforward, but you can only make a journal entry for one customer or vendor at the same time. If you wish to correct multiple customer or vendor balances because of this, you need to post separate entries.

What exactly is a Journal Entry?
A general journal entry is an accounting transaction that is entered, or posted, straight to the general ledger. A business's general ledger acts as its main group of accounts used to record balance sheet and income statement transactions.

For example, you may possibly have entered the monthly $100 household bill to your company's insurance expense account by accident. You can post an adjusting journal entry to cut back, or credit the insurance expense account by $100 while increasing, or debit the utility expense account by $100 to fix your mistake. All your valuable accounts would then be in proper order, and you also wouldn't have to replace the balance due by your vendor for the reason that it percentage of the transaction was recorded properly.

Journal Entries for Year-End Activities
Your certified public accountant or bookkeeper might want to make journal entries to perform year-end activities, such as posting tax adjustments to your books, recording depreciation expense or reclassifying revenues and expenses. Your accounting professional can offer you with specific information if you'd like to post the journal entries yourself at year's end, along with explanations for why the entries were needed for your particular situation. For more information about Record A Journal Entry In QuickBooks, please get in touch with us.

Steps to make General Journal Entries in QuickBooks
You possibly can make general journal entries in QuickBooks by following these step-by-step instructions:

Head to Company > Make General Journal Entries from the menu at the top of the screen.
Replace the Date field, if necessary, into the Make General Journal Entries window. QuickBooks will default towards the current date when you want to post an entry for a previous month or year, be sure to change it which means your entry gets recorded in the proper financial time frame.
Enter a number for your journal entry into the Entry No. field. QuickBooks will automatically number subsequent journal entries sequentially.
Go into the general ledger account number into the Account column. You can also choose the first account from a drop-down menu in the Account column.
Go into the debit or credit amount for the account you've selected into the Debit or Credit columns. The debits and credits must be equal to make the entry balanced and permit QuickBooks to create the entry.
Enter a descriptive memo when you look at the Memo Column. It should be displayed on reports that include this journal entry. This task is optional, however it's recommended to make sure you'll remember later why the entry was made.
Repeat Steps 4 through 6 before the entries completely offset one another while the transaction reaches a zero balance. Your total into the Debit column should equal the full total when you look at the Credit column, and also the journal entry will likely then be properly balanced.
Click Save & Close to save the journal entry and close the window, or click Save & New to save the journal entry and open a new window.
You could make most general journal entries in QuickBooks using these steps, but if you need to make journal entries that affect a specific customer’s account receivable or a vendor’s accounts payable, you will need to place the customer or vendor from the first line of the entry.