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AG Sammy
March 5, 2021
Question

Online Banking and Journal entries

  • March 5, 2021
  • 1 reply
  • 0 views

The online banking feature in QB saves years of time, but with the type of service based business I have, any income that comes from my account I just categorize it though the banking screen which is so simple and works. Im just confused if other than accumulated depreciations and amortizations, is there even a need for the journal entry or am i doing something wrong because so far its been running smooth, I just dont trust myself .

1 reply

JoesemM
JoesemM
March 6, 2021

Hi there, @AG Sammy. 

 

I want to officially welcome you to the Community space. Allow me to share some insights into how Online banking and journal entry works, so you can work your account effeciently.

 

Since the depreciation of an asset doesn't appear to any bank account. You'll need to create a journal entry to record the transaction since it only affects the Value of the Asset. 

 

To create a journal, here's how:

 

  1. Click the+ New icon.
  2. Under Other columns select Journal entry.
  3. On the first line, select the asset account you use to track the loan from the Account dropdown. Enter the depreciated amount in the Credits column.
  4. On the second line, select the Depreciation account you just created from the Account dropdown. Enter the same depreciated amount in the Debits column.
  5. Click Save and new or Save and close.

 

For more information, check out these articles: 

 

 

 Also, here's a guide on how to properly categorize banking transactions and in reconciling accounts to make sure that it matches with your statements: 

 

 

Reach out to me in the comment section below if you have any other questions or concerns. I'm more than willing to help. Have a good one!

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