Journal entries are the last resort for entering transactions. They let you move money between accounts and force your books to balance in specific ways. Use them only if you understand accounting or you’re following the advice of your accountant. You can also find a ProAdvisor if you need one.
A few reasons why you’d need to create a journal entry are:
- Entering debits and credits manually, like in traditional accounting systems,
- Transfering money between income and expense accounts, or
- Transfering money from an asset, liability, or equity account to an income or expense account.
Or, watch the video if that's more your style!