How to Make a Journal Entry in QuickBooks: Tips & Tricks

A journal entry in QuickBooks Online is an advanced accounting tool used for recording the financial transactions when standard forms like invoices, bills, or checks do not apply. While mostly tasks are automated in QuickBooks, but knowing how to make a journal entry in QuickBooks is essential for adjustments and specialized accounting needs.

This guide explains how to create, view, and manage general journal entries in QuickBooks to keep your financial records accurate.

What is a Journal Entry in QuickBooks?

A journal entry in QuickBooks Online is a manual accounting record used to move money between accounts or adjust balances. It follows the double-entry bookkeeping system, meaning every transaction must have a balanced debit and credit.

Here’s why we use the QuickBooks online journal entry:

1. Categorization Errors: To reclassify an expense mistakenly placed in the wrong account.
2. Non-Form Transactions: For items like depreciation or loan interest that don’t involve a standard bill.
3. Year-End Adjustments: To ensure tax totals and profit reports are accurate.
4. Manual Adjustments: To record bounced checks or other corrections that lack a dedicated button in the interface.

After learning about the QuickBooks journal entry, users often ask, “How do you make a journal entry in QuickBooks?” Look at the guide below to create a new entry.

How to Make a Journal Entry in QuickBooks Online?

Before starting, ensure you have the correct debit and credit details. If you are unsure, consult your accountant to maintain ledger accuracy.

Steps to Create a Journal Entry in QuickBooks Online

Follow these quick steps to create a new general journal entry QuickBooks:

1. Click the + New button on the left-hand menu and choose Journal entry.
2. On the first line, choose an account and enter the amount as either a Debit or a credit.
3. On the second line, select the other account you’re moving money to or from.
4. QuickBooks usually fills in the matching amount for you. Just make sure your total Debits and Credits match exactly.
5. The QuickBooks online journal entry system may enter the same amount in the opposite column on the other line.
6. You can add more lines if you want to, make sure your total Debits and Credits match.
7. Write a short note in the Memo section to remember why you made this entry later.
8. Click Save and close or Save and new.

Once the journal entry is saved, the transaction updates your account balances immediately. You can find it later in your Account History or by running a Journal Report to see all your manual entries in one place.

How to View General Journal Entry in QuickBooks?

Now, you have understood how to make a journal entry in QuickBooks Desktop. Let’s learn how to view the journal entries:

1. Go to Reports from the left menu.
2. Search for “Journal” and select the report.
3. Select your Report Period (Custom dates) and click Run Report.

How to Delete a Journal Entry in QuickBooks Online?

You should only use the QuickBooks journal entry as a last resort or with your accountant’s help. If you make an error, you can reverse the entry to fix the balance. If it was created by mistake, you can simply delete it. Here’s how:

Learn how to reverse a journal entry

Follow these steps to reverse a journal entry when you need to fix a mistake or balance your accounts. This method swaps your debits and credits but keeps the original transaction in your history.

1. Go to Settings and select Chart of Accounts.
2. Afterward, find the account used in the entry and select Account history.
3. Find the specific journal entry in the account register. You will see the Journal listed in the Type column.
4. Next, you need to click on the entry to expand it, then select Edit.
5. On the journal entry screen, select Reverse from the bottom menu.
6. Once done, click Save and close.

When you click on the Reverse a journal entry option, QuickBooks automatically generates a new entry to balance the first one. This will keep a record of what you have made in the current entry:

1. QuickBooks keeps the original number but adds an ‘R’ to indicate it is a reversed entry.
2. To keep your records organized, the new entry is dated for the start of the next month.
3. The new QuickBooks journal entry keeps the same info, such as the Account, Name, and Description, as the original journal entry.

Follow the Steps to Delete a Journal Entry

If you have created a QuickBooks journal entry by mistake, perform the steps below to permanently delete it. Before you proceed, make sure you really want to remove it, as this action instantly unbalances your accounts:

1. Go to the Settings and click on the Chart of Accounts.
2. Find the specific account and select Account history.
3. Now, look for the journal entry in the Type or Ref No. column to find your entry.
4. Click the entry option to open the details.
5. Click on the Delete option and choose Yes to confirm the changes.

Conclusion!

Hopefully, now you have understood how to make a journal entry in QuickBooks easily. By following the above simple guide, you can ensure that your business’s financial records are accurate and updated. If you still face issues in creating, editing, or deleting the journal entry, you can contact our professionals for quick help.

Frequently Asked Questions (FAQs)

1. What are the three basic rules of accounting for journal entries?

Debit means receiver and credit the giver, debit what comes in/credit what goes out, and debit expenses/credit income.

2. Why should I use a journal entry instead of a standard form?

Use journal entries for difficult financial adjustments that do not involve standard sales or expense forms, such as when you need to record a specific payroll journal entry example QuickBooks.

3. What are the types of accounts in QuickBooks?

There are mainly three types of accounts Personal (people/businesses), Real (assets), or Nominal (income/expenses).

4. How do I create a journal entry in QuickBooks Online?

Click the + New button, select Journal Entry, enter your debits and credits to ensure the transaction balances, and click Save and Close.

5. Can I edit a journal entry after it has been saved?

Yes, you can edit or delete it via Account History. However, if the entry was already reconciled, avoid editing it to prevent unbalancing your books, create a new adjusting entry instead.