A financial transaction’s record in an organization’s accounting system is called a journal entry. It offers a thorough description of the financial activity of a business and is the first stage in the accounting cycle.
The date, accounts impacted, amount, and description of the transaction are all included in a typical journal entry. The general ledger, financial statements, and other accounting reports are all created based on the journal entry, which is used to keep track of all financial activities.
Creating your own journal entry
You are able to create your own journal entry by going to the “Transactions” tab. From here you will see a tab labeled “Adjusting Entry,” which is your source for adding your own.
After opening the “Adjusting Entry” tab, this screen will appear. The first step is to add the date and base accounts that will be adjusted. Not only will you need to note if you are crediting or debiting an account, but also the correct amount for each one. There is a feature that shows if your entry is in balance. It is important to see “In balance” in green underneath your entry, as this will keep your account reconciled. Finally, a short description is needed, this will appear in your transactions. A simple explanation of why you are adjusting these base accounts is perfect. Clicking on “Create Adjustment” will adjust your accounts accordingly.