WHAT ARE “ADJUSTING JOURNAL ENTRIES”?–
Adjusting Journal Entries are used to summarize the alterations we have made to your books in accounting lingo. They are a simple way for us to report back to you the changes we have made to your books during the tax preparation process. You must post these entries in order to keep your set of books current with what the tax returns report.
HOW DO I POST MY “ADJUSTING JOURNAL ENTRIES”?–
Follow these simple steps in order to post our Adjusting Journal Entries to your Quickbooks file.
1) Sometimes alterations to the books require the creation of new accounts. Any new accounts should be listed in the “New Accounts” section near the top of your Adjusting Journal Entries. Along with the name of the new account, the type of account should be indicated.
1A) To create any new accounts, go to “Lists” –> “Chart of Accounts”, then click on “Account”, followed by “New”. Select the account type as indicated and click continue.
1B) Next, input the Account Name as indicated, then “Save & Close”. You may use “Save & New” if you have more accounts to create.
2) In Quickbooks, go to “Company” -> “Make General Journal Entries”. In some older versions of Quickbooks, you might need to go to “Banking” -> “Make General Journal Entries”.
2A) In the “Make General Journal Entries” screen, input the date as indicated on your copy of the Adjusting Journal Entries. In some cases, there will be several sections to the Adjusting Journal Entries requiring different dates. All entries in each section should be posted as of the date indicated. You may choose any text to describe the entry number. We recommend “HC-1″, “HC-2″, etc. Uncheck the “Adjusting Entry” box.
2B) Select the “Account” from the drop-down box and input the “Debit” (Left) or “Credit” (Right) amount as indicated in your copy of the Adjusting Journal Entries. In some cases dealing with Accounts Payable, Account Receivable and Payroll items, it is necessary to provide Quickbooks with additional information. If any input is required in this column, it will be indicated in parenthesis [ie. ("Home Depot")]. Once all information for an entry is entered, click “Save & Close”. You may click “Save & New” if you have additional adjusting journal entries to post.