Journal entries are the foundation of double-entry bookkeeping. Each entry has at least two lines - a debit and a credit - that must balance.Documentation Index
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When to use journal entries
- Depreciation - recording asset depreciation over time
- Accruals - recognizing revenue or expenses before cash changes hands
- Owner equity - recording owner contributions or draws
- Adjusting entries - month-end or year-end corrections
- Inter-account transfers - moving money between accounts in your chart of accounts
For most day-to-day transactions, you won’t need journal entries. They’re primarily for accounting adjustments. If you’re not sure, book a call with a bookkeeper.
How to create a Journal Entry
From a transaction:- Go to Banking → Transactions
- Click the + Add Transaction button at the top right
- Select Add Journal Entry from the dropdown
- Enter the Transaction Date and Journal Description (required, up to 255 characters)
- For each line, select a Bank Account or Category, then enter either a Debit or Credit amount
- Click + Add Line to add more rows as needed
- Confirm Total Debits equals Total Credits - the Save button stays disabled until balanced
- Click Save Entry
Example entries
Owner invests $10,000 into the business
Owner invests $10,000 into the business
| Account | Debit | Credit |
|---|---|---|
| Bank Account | $10,000 | |
| Owner’s Equity | $10,000 |
Record $200 monthly depreciation
Record $200 monthly depreciation
| Account | Debit | Credit |
|---|---|---|
| Depreciation Expense | $200 | |
| Accumulated Depreciation | $200 |
Accrue $1,500 revenue not yet invoiced
Accrue $1,500 revenue not yet invoiced
| Account | Debit | Credit |
|---|---|---|
| Accounts Receivable | $1,500 | |
| Revenue | $1,500 |