In a double-entry accounting system, financial transactions are classified as either debits or credits and are organized into records called accounts. Every debit transaction must have a corresponding credit transaction and vice versa. For each financial transaction recorded, an entry is made in the general ledger - the main accounting record of a business - and the amount debited always equals the amount credited. Because each transaction involves a debit and a credit, the books remain in balance.
QuickBooks Online is # 1 in cloud accounting for small businesses1. It organizes your accounting data in one central location so that you can easily track each dollar coming into and going out of your business. QuickBooks Online makes it easy to enter financial transactions and maintain balanced financial records. Enter transactions using intuitive screens inside QuickBooks Online, and the offsetting debits or credits are entered in the general ledger for you behind the scenes. QuickBooks does the calculations and organizes each transaction appropriately. Manage your double-entry bookkeeping the easy way with QuickBooks Online. Try it for free.
QuickBooks Online automatically enters the offsetting debits and credits for you
QuickBooks Online uses the double-entry accounting system in accordance with GAAP (Generally Accepted Accounting Principles). It enters debits and credits into the general ledger for you, performs any necessary calculations behind the scenes, and organizes your data so that you can generate financial statements anytime. In just a few clicks you can generate reports such as the balance sheet and income statement so that you always know where your business stands. QuickBooks Online makes your data accessible 24/7 from your Internet-connected computer or mobile device.
QuickBooks Online automatically records debits and credits for you so that your accounting data is always organized and your books are always balanced. When you enter a transaction, QuickBooks Online automatically creates the offsetting debit or credit in the system. For example, if you spend $200 on office supplies and pay in cash, you would simply enter the transaction into QuickBooks Online using an intuitive screen and specify that you paid via cash. QuickBooks requires that you assign each transaction to an account, and in this case you would choose the Office Supplies expense account from the drop-down list of accounts. QuickBooks then automatically enters the offsetting debit or credit for you, which in this case is a credit to your Cash account. QuickBooks Online saves time by doing the hard work for you behind the scenes.
While QuickBooks Online is designed to automatically enter the offsetting debit or credit for each transaction, it also enables you to make manual journal entries if you wish. Experienced accountants and bookkeepers may choose to enter credits and debits manually. To do this, simply go to Banking > More > Journal Entry and enter the transaction on the screen. Remember, two journal entries are required - one for the credit and one for the debit - so that the books remain balanced. Try QuickBooks Online for free and see how it makes make double-entry bookkeeping easy.