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afrance
Level 1

Can anyone explain why double entry accounting is used throughout Quickbooks apart from when you enter a bill and attach it direct to a customer account ?

 
6 REPLIES 6
Kristine Mae
Moderator

Can anyone explain why double entry accounting is used throughout Quickbooks apart from when you enter a bill and attach it direct to a customer account ?

I can provide an input why Quickbooks uses double-entry accounting, Afrance.

 

Our software uses this accounting method since it's the worldwide standard for business accounting. In this method, transactions record in at least two accounts. One as a debit, then the other as a credit.

 

You can check this guide for more information: Complete Guide to Double-Entry Bookkeeping.

 

We're just here if you have further questions. Have a nice day! 

Rustler
Level 15

Can anyone explain why double entry accounting is used throughout Quickbooks apart from when you enter a bill and attach it direct to a customer account ?

@afrance 

to answer the rest of your question

 

entering a bill does use double entry accounting, the bill is a credit in accounts payable, and what ever the bill is for is usually an expense, a debit.

 

that you associate a customer and perhaps make it billable has nothing to do with it.  Until you invoice the customer and bring the billable expense to the customer invoice that billable status is just a reminder.

gorhamenterprise1
Level 1

Can anyone explain why double entry accounting is used throughout Quickbooks apart from when you enter a bill and attach it direct to a customer account ?

How can I perform a double-entry accounting transactions in the quickbooks desktop version.

 

jamespaul
QuickBooks Team

Can anyone explain why double entry accounting is used throughout Quickbooks apart from when you enter a bill and attach it direct to a customer account ?

Hello, gorhamenterprise1.

 

I'm here to help you perform a double-entry transaction in QuickBooks Desktop. I'll also add more details regarding the processes. 

 

Just like what Rustler said, entering transactions in QuickBooks Desktop already involves double-entry accounting. What particular entry do you need help with? I'd appreciate more details about this.

 

You can create a sales receipt, an invoice, or a supplier's bill through the tool bar menus at the top. Using the shortcut icons is also a good way to create a double-entry accounting transaction. 

 

QBDTEnterTRN.PNG

 

You can check the articles in these topics if you need help entering them: 

 

If you'd like to know the breakdown of the recorded transactions, you can run the Journal report. It shows you the debit and credit of every transaction and what accounts are affected. Here's how to run it:

 

  1. Go to the Reports menu.
  2. Hover your mouse on Accountant & Taxes.
  3. Choose Journal

 

JournalRep.PNG

 

You can find more articles here in case you need help with other tasks in QuickBooks Desktop. 

 

If you need help recording a specific transaction, please let me know. I'll be here to help. I also welcome any QuickBooks Desktop concerns you might have. 

Itsme59
Level 1

Can anyone explain why double entry accounting is used throughout Quickbooks apart from when you enter a bill and attach it direct to a customer account ?

Hi,  I currently work on Exchequer and I will now also be doing work for a company that uses Quickbooks.  The company pays some pension payments for the Directors.  These payments are entered as a Nominal Entry on Exchequer by debiting Directors Renumeration and Crediting the Current Account they are paid from.  The same sort of entries are used for Employee Wages, Bank Fees etc.

How are these type of entries dealt with in Quickbooks?  For instance if the bank charges me quarterly fees then I don't have a bill per se, instead I have a direct debit on my bank account that I have to account for.  I would need to debit the GL for Bank charges and credit the GL for the current account - how do I do that in Quickbooks?

Sorry for the long question and I hope it makes sense!

GeorgiaC
QuickBooks Team

Can anyone explain why double entry accounting is used throughout Quickbooks apart from when you enter a bill and attach it direct to a customer account ?

Hi Itsme59, thanks for joining this thread - you can record journal entries in QuickBooks Online to credit and debit accounts - the GL here is completely customisable meaning you can create as many accounts as you need to make this personalised to the business. Alternately, if you have your bank connected, you can categorise the downloaded transaction - in the example above, if you have an outgoing transaction for bank fees showing on the bank feed, you can categorise this under a 'bank charges' account, which will create an expense transaction that credits the bank and debits the expense account. 

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