Are you struggling while creating a journal entry in QuickBooks Online? If that’s so you have arrived at the perfect spot. In this detailed post, we have discussed the stepwise instructions to make the journal entries. The main motive for preparing the journal entry is to digitally record every business transaction appropriately in the books of accounts.
However, to get learn more about how to make a journal entry in QuickBooks Online, you must explore this entire post.
Getting issues while creating a journal entry in QuickBooks Online? Call us at @+1855-603-490 and get all your issues resolved within no time.
Table of Contents
What are the Major Reasons for Creating Journal Entry in QuickBooks Online?
Here, we have described some of the reasons why you must create a journal entry in QuickBooks Online. Let’s explore it.
- It allows the users to transfer money between income and expense accounts.
- Moreover, by creating the journal entry you can easily transmit money from an asset, liability, or equity account to an income or expense account.
What are the Rules to Create Journal Entry in QuickBooks Online?
QuickBooks journal entries are performed for income tax provisions, depreciation entries, and loan interest adjustments. There are various conditions to enter journal entries. These rules are mentioned below.
- Include one account receivable or accounts payable type entry
- Use accounts receivable or payable on the second line of the journal entry
- Accounts payable or receivable type entry will require a customer or vendor
- Never make Journal entries to Inventory or Payroll accounts.
Procedures to Create A Journal Entry in QuickBooks Online
Discuss with accounting professionals for learning and assistance. If you still don’t know which account requires the debit and credit transaction, follow the below instructions properly. Go through the below steps to create a Journal Entry in QuickBooks Online.
- In the beginning, hover your cursor toward the + New icon.
- After this, head towards the Journal Entry option and proceed to the next step.
- Following this, from the Accounts field you have to pick an account.
- Based on whether you wish to debit or credit the account, add the amount within the right column.
- Now, choose another account from the list of the available option to which you wish to transfer the money to or from. Later on, based on whether you have included the debit or credit amount in the first line you must input the same amount within the opposite column.
- Furthermore, you are supposed to review the amounts. Here, you must verify that you have added the same amount within the Credit column on one line and the Debit column on another. This will mainly reflect that your both accounts are balanced properly.
- Afterwards, you must include the correct information within the memo section so that you must be aware of why you have prepared the journal entry.
- At last, you must hit the Save & New option or Save & Close whichever is available on your screen to wind up the entire process.
This is all about how to make a journal entry in QuickBooks Online. However, if you are still struggling while preparing the journal entry you can consult with our professionals through the live chat facility. Otherwise, you may drop a message to our professionals for a quick response.
Frequently Asked Questions (FAQ’s)
Q1. What are the steps to reverse a journal entry in QuickBooks Desktop?
Ans. Go through the stepwise instructions given below to reverse a journal entry in QuickBooks Desktop.
- Firstly, you must choose the Settings option followed by the Charts of Accounts.
- Now, you must browse for the account for which you have prepared the account. Further, tap on the View Register option.
- Next, look for the journal entry within the account register. Check that the word “Journal” is in the Ref No or Type Column.
- Following this, pick the journal entry to expand the view and hit the Edit option.
- Afterwards, hover your cursor over the Reverse option and then tap on the Save option.
Q2. How Can you Delete a Journal Entry in QuickBooks Online?
Ans. Suppose you have established a journal entry by mistake, then you can remove it permanently by applying the steps below.
- Initially, move to the Setting menu followed by the Charts of Accounts.
- Now, look for the account that you have prepared the journal entry for. Later on, hit the View Register option.
- Afterwards, search for the Journal entry from the Account register. Also, verify that the word “Journal” in listed in the “Ref No” or “Type” column.
- Now, pick the journal entry to expand the view and hit the Delete option.
- At last, hit the Yes button for the confirmation.