QuickBooks has been thriving as one of the important accounting software since the last century. It has been able to meet the accounting needs of the time. Although QuickBooks offers users with a slew of benefits, which helps it stand out from its competitors in the market.
Although it is not the last resort to record journal entries in QuickBooks, it can be used for the same besides paying bills and making deposits.
What does entering or recording journal entry in Quick books mean?
In layman’s words, recording a journal manually in quick books is the same as doing it in pen and paper where you have two columns one for debit and the other for credit. A journal entry in QuickBooks is probably the first step in the accounting phase.
How to record journal entries in QuickBooks?
It is not a herculean task to record journal entries in QuickBooks but certain steps has to be mastered .With the fundamentals in mind, let’s take a look at how to record a journal entry in QuickBooks in the easy steps below:-
- The first step is to select the journal entry feature from the drop-down menu. You’ll just need to browse to the portion of your QuickBooks Online programme that enables you to create journal entries and enter them. After clicking the + button at the top right of your file, you’ll see a dropdown menu labeled “Create,” which includes the option “Journal Entry” in the furthest column on the right-hand side of the menu bar.
- When you have to put in relevant information and you are good to go. Enter the date and journal number in the appropriate fields. Once you’ve opened this form, you’ll want to make a change to the journal date at the top of the page. QuickBooks will automatically draw in the current date, so if you’re recording a journal entry from a prior month or day, you’ll want to double-check that you’ve entered the proper date. QuickBooks will automatically bring in the current date.
- Following this step you’ll need to enter in the journal number. In this example, the journal number is 151; QuickBooks will automatically number any new journal entries that are created after this number in a sequential manner.
- Create a journal entry for prepaid rental insurance in this case study to see how it’s done. Because rental insurance is often prepaid for a month or a year, it’s considered an “other current asset” to start, but needs to be expensed out as the year goes on, monthly…
- In order to account for this, we’ll be adding two new accounts to the category column. The “Company Checking Account” is the first account on your chart of accounts, according to the information you provided. When you pay for your rental insurance, the money from this account will be transferred to another account. The “Prepaid Insurance Account,” on the other hand, is the name of the second account. In this account, the money you use to prepay for your insurance for the year will be deposited, and it will grow in value. In any QuickBooks journal entry, there will always be two accounts, one to credit and one to debit.
- The step that is followed by this is the to Input the amounts for the debit and credit accounts. Once you’ve pulled the correct accounts, you’ll fill in the corresponding debits and credits.
- The final step needed to complete your QuickBooks journal entry is to add a description. A description explains that this journal entry explains what the journal is for.
After you’ve filled in the description, you’ll save the journal entry and close it.
However, there is room to edit a journal entry in QuickBooks after you have created it.
- To begin, go to the QuickBooks desktop account’s Company menu and choose Make General Journal Entries. After that, go to the Find button and type in the appropriate information.
- After that, fill out the fields for the date, the person’s name, the amount, and the entry number.
- Click on the Find button on the right.
- To make changes, double-click on the journal entry and make the necessary changes.
- When you’re finished editing, click on the Save and Close button to save your work.
- Click on the Yes button to have all of the modifications made to it saved.
- You are good to go!
In QuickBooks, you can resort to these steps to delete a journal entry. At the top of the screen, click “Lists,” and then pick the list that contains the item you wish to remove from the system.
- The list appears on the screen, allowing you to browse through all of the items on the list.
- To highlight an entry, click on it to the right of the item you wish to delete: If you double-click the item, a popup will display on the screen, which will prohibit you from removing the entry from the list.
- If you do decide to double-click the item, be sure to dismiss the window by clicking the “X” in the top right corner of the screen.
- By selecting “Delete X” from the top menu, you will be able to replace the “X” with a name of your choosing for the list.
Ultimately, it’s fairly simple to record journal entries in QuickBooks Online. This being said, a QuickBooks journal entry is perhaps the clearest example of double-entry accounting—when something is debited, something else is always credited. These are the easy ways to record journal entries in Quickbooks. A customer invoice, for example, debits accounts receivable and credits revenue. A vendor bill, on the other hand, credits accounts payable and debits the cost of goods sold or expenses. In this way, no matter what transaction you record in the journal entries in QuickBooks, you will always have everything in place.