You would need to make a journal entry, for example, at the end of each month to record depreciation or to record interest accrued on a bank loan. That being said, some journal entries still need to be processed, in order to record transfers between bank accounts and to record adjusting entries. Today, however, accounting systems, such as MYOB, Xero, QuickBooks and the like, will automatically record most business transactions into the ledger immediately after the software prepares sales invoices, issues cheques to creditors, or processes receipts from customers, and as such you don’t have to create journal entries for most of your business’s transactions. Journal entries using accounting software Before computers, bookkeepers used to log all the financial transactions of a business in paper journals, and then at the end of the month transfer these journal entries into the general ledger, which was divided into various accounts that is now called the chart of accounts, and all the transactions were posted to these accounts using a method called double-entry bookkeeping. the general ledgerĪn accounting journal is the record that keeps accounting transactions in chronological order (i.e., as they occur), while the general ledger is a record that keeps accounting transactions by the account – see our previous post on the chart of accounts if you need help understanding what the term ‘account’ means in this context. Most bookkeeping newbies don’t know what a journal entry is, though, which is what this blog post – the latest in our Bookkeeping Beginner Basics guide companion series – is going to help you to understand. In our educational guide, Bookkeeping Beginner Basics, which you can download from the EzyLearn website for free, you’ll learn how to record journal entries in your accounting software, whether you’re using MYOB, Xero or QuickBooks. Last month from Steve Slisar's Twitter via Mailchimp Poof and Mentor Education is gone – Oops, page not found, then Inspire Education Type Message - /irI2iY
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