[Explained] How to make a QuickBooks Journal Entry?

QuickBooks software is used by many companies to handle their financial statements and works. Many people prefer to use the Online version of the QuickBooks software. Users make transactions with the QuickBooks transactions and there are chances that they will make the mistake for the same. It is very easy to correct the mistakes that you have made while reporting for the transactions by simply creating a journal for the transactions. It is very easy to make in the online version of the software as it stores all the transactions in the form of a journal. In this article, we are going to talk about the simple steps in which you can make a QuickBooks journal entry. All the things that you are required to know while making a QuickBooks journal entry have been mentioned in the article.

Brief Introduction of Quickbooks Journal Entry

Journals are the transactions that are entered into the general ledger. It keeps a track of the transactions you make, be it debit or credit. You are required to mention both credit and debit in the general ledger. You have to make sure that the amount debited should be equal to the amount credited, keeping the account statement accurate. Every time you make a transaction, you are required to enter it to the general ledger. Read the points below stating when you should enter a transaction to the general ledger.

• If you make any transaction between the expense account and the income account of the company.
• In case there is a transfer of money from any asset or liability account.
• General debit and credits made with the account.

Regulations for QuickBooks Journal Entry

Here is a list of all the rules that you need to follow before making a QuickBooks journal entry. Make sure you follow all of them.

• The first rule is to never make the journal entry to a payroll account or the inventory. You can add an inventory in QuickBooks using simple steps.
• Make sure you enter the details of at least one receiving account or paying account.
• Next, you will again have to enter the receiving and paying account in the next line.
• Enter the details of the customers or vendors if you are using a paying account type.

Points to Remember at the Time of Making QuickBooks Journal Entry

If you are going to create a journal entry in QuickBooks, here are some of the points that you need to remember.

• In case, you want to use a multi-currency in QuickBooks, you will be required to create a separate journal entry for every currency.
• If you have made any mistake while making a QuickBooks journal entry, then you will have to delete and then recreate a journal entry to rectify your mistake.
• In case you are using the plus version of the QuickBooks online version then to view the looks and class you will be needed to go to an additional column.

Steps to Follow to Make QuickBooks Journal Entry

Here is a stepwise guide on how you can make a QuickBooks journal entry. Follow the steps mentioned below.

Go to the Journal Entry 

The first step is to go to the journal entry option provided by QuickBooks. You will see an option to create a QuickBooks journal entry in the plus icon present on the right-hand side of the screen. You are needed to click on that option. Once you have done that, you will be moved to the next page where you will be required to fill the information to create a journal entry.

Enter the Needed Information

The next step in creating a QuickBooks journal entry is to enter the required information. You will be required to edit the date of the journal if you are creating a journal for a previous date or a forward date. If you are making it for the current date, QuickBooks takes the current date as default. The other information that you can edit is the number of the journal. You can edit it or keep it default generated by the QuickBooks.

Fill Up the Details

The last step to create the QuickBooks journal entry is to enter the remaining details. Follow the steps mentioned below:

• The first information that you need to enter is the accounts. In this field, you will have to enter the accounts that you have mentioned in the chart of accounts.
• The next information that you need to enter is the journal code. You need to keep in mind the same journal code to make transactions.
• The next information needed is the debit and the credit. 
• The next information needed is to enter the details of the vendor, employees, and your customers.
• Lastly, you will be required to enter the description of the journal so that you can refer later.
• Now, you will have to select an option for the recurring journal in QuickBooks and save your settings.

Conlcusion:

Journal entry in QuickBooks is used to keep track of all the transactions that are made by the user. You can also create a QuickBooks general ledger report to keep track of all the transactions you make. It can be a very essential feature provided by the QuickBooks software to manage your accounts. We have tried our best to provide you with information on how to create a journal entry. We have got a team of all professionals that can help you with any issue regarding the QuickBooks software and if you face any issue while using the journal entry feature you may call us.

Frequently Asked Questions (FAQs)

Q.1 Is QuickBooks journal entry debit?

These entries are handled by QuickBooks online. However, double-entry accounting method has been used by QuickBooks hence the journal entry debit in QuickBooks. 

Q.2 What is an accounting journal entry?

A journal entry is a record of a business transaction, and it is generally recorded in a general ledger.  

Q.3 What type of expense is QuickBooks?

The expenses on QuickBooks is usually considered as a business expense. Well, this is most likely category for it.