QuickBooks has become one of the best accounting tools for small businesses, freelancers, and enterprises. Besides using payroll and other accounting features, you can also create QuickBooks Journal Entry. The journal entry in accounting keeps the records of both sides of transactions in the form of a credit or debit.
Using this feature of QuickBooks, you can easily create a new transaction. When organizing your financial information. There can be chances when you have entered a wrong transaction. If that happens, you don’t need to worry; you can easily edit or reverse any transaction in QuickBooks. In this blog, you get to know the complete process of how you can create a journal entry or edit and reverse already existing transactions.
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Reasons You Should Create Journal Entries for Your Businesses
The purpose of a journal entry is to keep a record of business transactions correctly and accurately. A journal entry keeps every little piece of information related to a transaction and how many accounts it affects. These transactions will include:
- Every minor detail of credit and debit transactions is linked to your business.
- Using Journal Entry, you can manage the transaction details between the income and expense accounts.
- You can also manage the details of the transferred money from an asset, liability, or equity account to an income or expense account.
Learn How You Can Easily Create, Edit, and Reverse A Journal Entry
You can easily create, edit, and reverse any journal entries in QuickBooks company by using the below-given steps:
Add or Create a Journal Entry in QB
Follow these steps to add or create a new journal entry in QuickBooks:
- Open QB Desktop and click on the ‘Company’ menu.
- Now, select ‘Make General Journal Entries.’
- It will require entering details in the fields to create a journal entry. When done, ensure the debit in the journal entry equals the credit.
- Now, ‘save’ the changes and click ‘Save & Close,’ you’ve successfully created a journal entry.
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Edit an Existing Journal Entry
Here’s what to do to edit a journal entry:
- Click on the ‘Company’ menu in QB.
- In the pop-up menu window, select ‘Make General Journal Entries.’
- To find the journal entry you want to edit, select ‘Edit’ and enter the ‘Name,’ ‘Date,’ ‘Entry No.,’ and the amount, and then click ‘Find.’
- Select and double-click on this journal entry and then make the required changes.
- When done, click ‘Save’ and ‘Save & Close.’
- Tap ‘Yes’ when asked to keep a record of the changes you’ve made.
Way to Reverse a Journal Entry
Here’s how to reverse any existing journal entry:
- Select’ Make General Journal Entries in the ‘Company’ menu.’
- Click ‘Find’ and enter the ‘Name,’ ‘Date,’ ‘Entry no.’ and ‘Amount’ of the journal entry you want to reverse.
- Now, select ‘Reverse’ and click ‘Save’ the changes.
- Finally, click ‘Save & Close.’
Note: After reversing a journal entry, ‘R’ will be added next to the entry number, and the credit and debited amount will be reversed.
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After following this guide, we hope you can create a new QuickBooks Journal Entry and successfully edit or reverse the existing journal entries. If you face any issues while doing so, dial +1.855.738.0359 to connect with the team of QB professionals and let them handle this for you.
