You can use Journal Entry to record additional entries, such as adjustment and closing entries, and transfer balances between accounts to do custom bookkeeping.
Besides invoicing, there will be more regular expense for your company such as salaries, loan payouts, depreciation, etc.
All it takes is simply minimal accounting knowledge to understand how to standardize these transactions and keep them in the book by yourself.
Go to Accounting > Journal Entries where you can,
- Click “New” to create a new journal transaction.
- Select "Edit" in a specific entry's "Actions" menu to edit it.
- Select "Delete" in a specific entry's "Actions" menu to delete it.
In this example, we need to create a liability account "Short-Term Loans" and an asset account "Restaurant equipment" first. Now let's help Jessica to finish her entry.
- Click "New" to create a new journal.
- Specify Transaction date.
- Specify description- what this transaction is all about.
- In the first row, select the liability account "Loan from bank" and put the amount in the credit field since it's an increase to company liabilities.
- In the second row, select the asset account "Restaurant equipment" and put the amount in the debit field since buying equipment for the company increases asset values.
There are a few general rules to make journal entries as you might need to be aware of,
- There must be at least one account for debit and another for credit.
- Sum of debit amounts must equal sum of credit.
You can add more rows by clicking on "+ Line Items" or delete them by clicking on the trash icon in the respective lines.
Then click on "Save" to save it in your book.