Journal entries are the last resort for entering transactions. They let you move money between accounts and force your books to balance in specific ways.
Use them only if you understand accounting or you’re following the advice of your accountant. You should also have a good understanding of debits and credits.
Here are a few reasons to create a journal entry.
- Enter debits and credits manually, like in traditional accounting systems.
- Transfer money between income and expense accounts.
- Transfer money from an asset, liability, or equity account to an income or expense account.
Create a journal entry
- Select + New.
- Select Journal entry.
- On the first line, select an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
- On the next line, select the other account you’re moving money to or from. Depending on if you entered a debit or credit on the first line, enter the same amount in the opposite column.
- Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
- Enter information in the memo section so you know why you made the journal entry.
- Select Save and new or Save and close.
Want To Customize journal Voucher According to your business Need?
Try Elate QB Addins - for QuickBooks Custom Invoices Free.
