QuickBooks · Jan 8th 2026 · 7 Min read

How‍‌‍‍‌‍‌‍‍‌ to Make a Journal Entry in QuickBooks Online: A Step-by-Step Guide for Professionals

Business finance managers such as you must be aware that QuickBooks Online (QBO) automates nearly all aspects. The software is intent on keeping you away from the general ledger by automating tasks like bank feed capturing and invoice sending.

Nevertheless, there are situations where automation is not sufficient. Perhaps you want to depreciate an asset, fix a mistake from the previous month, or apply the year-end tax adjustments that your CPA has given you. Those are the instances you make use of manual journal entries.

The ability to enter a journal entry in QuickBooks Online is a core competence of both accountants and knowledgeable business owners. This way, you can, in essence, transfer money between accounts without any actual transaction (such as a check or a bill) having taken place.

Through this tutorial, you will learn how to do it step by step, when it is the right time to do it, and maybe most importantly – when it is better to stay away from it.

What is a Journal Entry?

Let us not go straight to buttons and menus; first, let us clarify what a journal entry actually is. A journal entry is a manual accounting transaction that directly affects the General Ledger.

Way back before computerization, every single transaction was a journal entry. Somebody even kept track of such things on paper – a debit was noted on the left and a credit on the right. QuickBooks Online conceals the double-entry bookkeeping system behind the user-friendly “Invoices” or “Expenses” forms.

Once you manually make a journal entry, you are basically accessing the car’s engine and doing the repairs yourself. You need to have everything in order:

Total Debits must be equal to Total Credits. QuickBooks will not allow the transaction to be saved if it is not balanced.
You are playing by the rules in terms of accounts. Even one small error can cause your Balance Sheet or Profit & Loss statement to be inaccurate.

When Should You Use a Journal Entry?

Simply because it is possible to post a journal entry does not mean it is appropriate to do so in every situation.

Don’t use Journal Entries for:

Inventory adjustments: Just take advantage of the inventory adjustment tool.
Customer Invoices or Payments: The use of this method will cause disruption to your Accounts Receivable from the aging report.
Vendor Bills or Checks: Your Accounts Payable reports will get messed up.

Do use Journal Entries for:

Depreciation: Periodically recording the utilization of property, plant, and equipment.
Payroll adjustments: For example, if you opt for a third-party payroll company service that does not have automatic synchronization capabilities.
Loan interest: Allocating a loan payment into the components of principal and interest if the bank feed didn’t pick up such a transaction properly.
Year-end adjustments: Your tax advisor will provide you with journal entries that reconcile your tax return.

Pro Tip: Don’t be shy about consulting an accountant if you are not one yourself and want to make manual entries. It is way simpler to get the right advice beforehand than to pay someone to sort out a tangled General Ledger later ‍‌‍‍‌‍‌‍‍‌on.

Step-by-Step: How to Make a Journal Entry in QuickBooks Online

Ready to record your transaction? Follow these easy steps.

Step. 1: Navigate to the “New” Button

Log in to your QuickBooks Online account. Look for the + New button on the top left sidebar of your dashboard. This is your command centre for creating almost any transaction.

Step. 2: Select “Journal Entry”

Once the menu opens, look under the column labelled Other. You will see an option for Journal Entry. Click it.

QuickBooks Journal Entry

Step. 3: Set the Date and Journal Number

A form will open up.

Journal Date: Enter the date the transaction occurred (e.g., if you are recording depreciation for last month, use the last day of that month).
Journal No: QuickBooks will auto-populate this, but you can customize it to help you track specific types of entries (e.g., “ADJ-2023-12“).

Step. 4: Enter the Debits and Credits

This is the core of the process. You will see a grid with several columns.

First Line (Account): Click the drop-down and select the first account you need to adjust.
Debit or Credit?: Enter the amount in the appropriate column.
- Quick Refresher: Debits increase assets and expenses; Credits increase liabilities, equity, and income.
Description: Write a clear memo explaining why you are making this entry (e.g., “Dec 2024 Depreciation”). Do not skip this! You will thank yourself later when reviewing reports.
Name (Optional): If this involves a specific customer or vendor, select them here.

Step. 5: Balance the Entry

Move to the second line. Select the second account involved in the transaction.

QuickBooks is smart; it will usually auto-fill the opposing Debit or Credit amount to ensure the entry balances to zero.
If you have a complex entry involving multiple accounts (a compound entry), keep adding lines until the Total at the bottom shows that the Debits and Credits are equal.

Step. 6: Attach Documents (Optional but Recommended)

See that paperclip icon at the bottom left? Use it. If you have a spreadsheet from your accountant or a PDF of a loan schedule, upload it here. This provides an audit trail right inside the transaction.

Step. 7: Save

Click Save and close (bottom right) to finish, or Save and new if you have more entries to make.

More‍‌‍‍‌‍‌‍‍‌ Advanced Tips to Handle Entries

Preparing Recurring Entries

Do you always end up booking the same $500 amortization expense over and over? Forget about typing it every time.

While at the Journal Entry screen, click Make Recurring.
Adjust the frequency (e.g., Monthly on the 1st).
QuickBooks will now handle it automatically for you.

Reversing Entries

Sometimes it is necessary to have an entry for the period but have it reversed in the following period, that is, the next day (it is very typical with accruals).

Locate the stored Journal Entry.
In the header on top, click Reverse.
QuickBooks makes a new entry with the Debits and Credits changed, dated the first day of the next month.

So, how is hosting related to this?

On the one hand, QuickBooks Online is fully cloud-based. On the other hand, many accounting firms and mature businesses still use QuickBooks Desktop for its powerful features. However, these users still wish for the cloud’s convenience.

QuickBooks Desktop Cloud Hosting is the solution that answers this conundrum. When you own QuickBooks Desktop, and it is hosted on a secure server, you will benefit from the Desktop’s feature-rich environment as well as Online’s remote ‍‌‍‍‌‍‌‍‍‌access.

If‍‌‍‍‌‍‌‍‍‌ you find yourself currently struggling with the limitations of QBO when it comes to complex journal entries or inventory, then consider the option of the Best QuickBooks Hosting Providers. They are a solution that will enable you to run the full Enterprise or Premier versions on a remote desktop.

QuickBooks Pro Hosting is the right choice for those whose use of the Pro version is limited and who wish that their CPA can log in, from their office and make complex adjusting journal entries without having to send “Accountant’s Copies” back and forth. Remote connectivity, coupled with heavy-duty accounting power,is actually at your fingertips.

Frequently Asked Questions (FAQ)

How do you create a journal entry in QuickBooks?

A journal entry can be made by first pressing the + New on the dashboard, then under the “Other” column choosing Journal Entry, and finally logging your account details, but more importantly, ensuring that Debits equal Credits.

How do I manually add an entry in QuickBooks Online?

A manual entry can be done via the Journal Entry page, where one is required to select which accounts will be debited and credited, along with filling in the date and putting a description. Saving the document, however, is only done if one confirms the entries balance.

How to record journal entries?

You‍‌‍‍‌‍‌‍‍‌ should first figure out which accounts will be changed and decide which ones will be debited and which will be credited before creating a journal entry. Lastly, you enter the information in the accounting software. The process is the same in QuickBooks by using a “Journal Entry” form, where the General Ledger is updated precisely and ‍‌‍‍‌‍‌‍‍‌correctly.

Where are my journal entries in QuickBooks Online?

Locating previous journal entries is no longer a big deal when you are well acquainted with the search facility (magnifying glass icon) at the top right that allows you to choose “Advanced Search”. Here you can filter your search by “Journal Entries”. If you go to the Reports tab and run a “Journal” report, you will also get a list of all the entries that have been made during a certain timeframe.

Conclusion

By mastering journal entries in QuickBooks Online, you will be empowered to maintain the accuracy of your accounting records as well as comply with tax regulations. Besides being an excellent software manual for adjustments and non-cash transactions, it remains a tool that must be handled with caution. You ought to always verify your debit and credit entries and seek professional advice when unsure.

Whether it is through the native QuickBooks Online platform or you are utilizing the powerful desktop version via QuickBooks Desktop Cloud Hosting, the key to achieving financial clarity and business success is in having a clean General ‍‌‍‍‌‍‌‍‍‌Ledger.

written byMark Calatrava

About Author

Mark Calatrava is an experienced content writer with a passion for delivering informative and engaging content. With an impressive 9+ years of experience in the field, Mark has honed his skills in various writing styles and formats. As a certified QuickBooks ProAdvisor, Mark has an extensive understanding of the QuickBooks platform, where he possesses in-depth knowledge and a deep understanding of the software.

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