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August 3, 2020
Question

How do I record an accrual basis journal entry? All of the options are only letting me log it as a cash basis.

  • August 3, 2020
  • 1 reply
  • 4 views
I'm trying to recognize the accrued interest of a note payable. It needs to be reflected on the Accrual P&L and on the Balance Sheet. I cannot find how to do this in QuickBooks. I've even played around with a few different setups.

1 reply

Pabz_L
August 3, 2020

Thank you for posting here in the Community, @hdsds19.

 

 Let me share some information about Journal Entry in QuickBooks Online.

 

In QuickBooks, you can make a Journal Entry to correct a transaction and post entries that cannot be performed in other ways such as adjustments to profit or loss. Also, Journal entries provide important information that is used by auditors to analyze how financial transactions impact a business.

 

When creating a journal entry, there is no option to select cash or accrual basis. Also, journal entries will not reverse for cash basis statements because it is always assumed to be cash basis, regardless of the accounts included in the entry. 

 

You may also contact your accountant for the best advice.

 

I’m adding an article so you’ll be guided on how to create a Journal Entry and a few reasons that need to consider. Create a Journal Entry.

 

Please let me know if you have any other questions. I am here to help. Keep safe!