How to Use QuickBooks to do Journal Entries

The folks at Intuit had one aim in mind when they created QuickBooks: Make it easy for anyone to track their financial health. They have simplified the process so much that creating journal entries has become a relatively simple process. Here are a few tips on how to create and edit journal entries.

Difficulty: Moderate

Instructions

1. Enter data into the various forms in QuickBooks, such as invoices, bills and checks. A journal entry should be created automatically "behind the scenes." This greatly simplifies the process and eliminates the tedious job of reentering information several times.

2. Save the transaction and select "Reports > Transactions" from the drop down menu, or click on the journal icon in newer versions of the program. You may also see "General Journal" or "GENJRNL" in the register after the entry has been created.

3. Check to see if the entry has been recorded properly. If not, go back to the form in which the data was entered and change it. Then recheck the journal entry by accessing it using the process outlined above.

4. Close out the fiscal year by doing absolutely nothing. QuickBooks automatically closes out the year and starts a new series of entries for you by automatically transferring net income into a Retained Earnings account. Unfortunately, you can't view this journal entry.

5. Try not to edit the journal entries. Instead go back to the original forms and edit them. Editing journal entries could result in errors in the reporting process.