QuickBooks Online is useful for importing journal entries online. You can easily import the entries from your company’s server. QBO allows you to properly store all the data sets without any loss of information. In addition, with QuickBooks Online, errors can be avoided while importing the journal entries.
For importing these entries in QBO, a set of steps has to be correctly followed. To know more about how to import journal entries into QuickBooks Online, you can go through this blog. Here we have also described what importing these entries means and when you should import them. In addition, we have given certain tips to make the importing process smooth.
What does it Mean to Import Journal Entries in QuickBooks Online?
A journal is a kind of accounting book where all the credit and debit transactions are recorded. They should be stored in a place that safeguards them from getting lost. When you import journal entries into QuickBooks Online from Excel or any other software, you transfer bulk accounting files to safely store them.
When should You Import Journal Entries into QuickBooks Online?
The following reasons explain why you should import journal entries into QuickBooks Online:
- For preparing balance sheets, audit reports, credit, and debit, journal entries need to be imported from the local system to QBO.
- To analyze financial expenses, revenues, and budget forecasts, importing the journal entries to QuickBooks Online can be useful.
- With QuickBooks Online, data entries can be edited and modified when the journal entries have been imported.
How to Import a Journal Entry into QuickBooks Online?
One can import journal entries to QuickBooks Online by following two steps. The first one is the preparatory step where a spreadsheet needs to be made with the transaction details. Once the spreadsheet is complete, you can import the file to the software.
There is an Import function that allows you to select the file where the entries are stored. After the file is selected, mapping needs to be done between the QuickBooks accounts and the journal entries.
In the sections below, we have discussed the detailed steps for how to import a journal entry into QuickBooks Online.
Step 1: Preparing Spreadsheets with Journal Entries
First, a spreadsheet needs to be prepared for storing all the journal entries. Here, the columns will represent the attributes related to transactions and the rows will delineate the transactions. After this, you can continue to import the entries in QBO.
- While preparing the spreadsheet, ensure that the formatting is correct. The font size, fields mentioned in the columns, font type, etc., should be clear and understandable.
- Entities related to a transaction need to be entered in each column. In an accounting journal, the following fields must be mentioned in the spreadsheet.
- “Date on Which the Journal Entry was Made”
- “Journal Entry Code”
- “Account Name” related to the entry
- “Debit” and “Credit” Amounts
- “Transaction Type”
- You need to set the correct format of the dates. Make sure that they are matching with the format used in QBO.
- If some transactions in the journal concern new accounts, then you need to first link those accounts in “Charts of Accounts”. For this, open “QBO” and move to “Settings”.
- Choose the “Charts of Accounts” tab.
- From the dropdown, choose “New”.
- A page will open. Click on “Account Type”.
- Once selected, move to “Detail Type”. A dropdown will appear. You need to select the detail type according to the transaction.
- Enter an appropriate name for the new account and then write a small description.
- Set the time for starting the tracking of the finances related to the new account.
- Enter the unpaid amount related to the account in “Balance”.
- Verify all the information.
- Save the page. The new account will be linked to “Charts of Account”.
Step 2: Importing Journal Entries to QuickBooks Online
QBO allows you to import the journal entries stored in the spreadsheet you have prepared. Before you tap on the Done option to close the import, make sure that the journal entries are properly mapped with their respective account details.
- Open “QBO”.
- Go to “Settings”.
- Select “Import Data”.
- From the dropdown, click on “Journal Entries”.
- On the new page, you will see the “Download” option. Use it to browse the file with the saved entries in the local system.
- Once the file is selected, click on “Open”.
- Press “Next”.
- Begin the data mapping. Ensure that you are properly linking the fields in the spreadsheets and matching the ones present in QuickBooks Online.
- Tap on “Start Import”.
- Press “Done”.
Tips to Consider while Importing Journal Entries to QBO
Before you import journal entries into QuickBooks Online from Excel or any software, these tips should be considered:
- If the entries have different currencies involved in the transaction, then prepare different journals for each currency.
- For B2C business models, adding columns with customer names and details in the spreadsheet will help in understanding better.
- In case you have imported a wrong file, reverse the function from QBO to delete it.
- It is best to segregate the accounts based on “Receivable” and “Payable” to properly track the transactions in the journals.
- Ensure that the dates are entered in the proper format as per QuickBooks Online.
Importing the journal entries to QuickBooks Online helps in running batches on the files, editing and modifying the transaction details, preparing audit reports, and performing other accounting tasks. QBO offers an option where different journals can be imported from spreadsheets stored in the local systems. This is what we learned in this blog. We hope that the steps shown here helped you in easily importing the journal entries to the software. For any queries, you can drop us a comment.