Journal Entries - An Overview
Journal Entries Guide:
What are journal entries?
Journal entries are the building blocks of financial accounting, and are literally a ‘journal’ of all the transactions in your business. In FreshBooks all your activities – sending invoices, accepting payments, and creating credits and expenses – are compiled into journal entries that can be sent to your financial adviser in .iif (QuickBooks compatible) and .csv formats.
Who are they for?
Journal entries are primarily used by the financial adviser managing your books. With these entries in hand, they can quickly generate financial reports and tax filings for your business.
How do they benefit me?
If you have an accountant or financial adviser journal entries deliver big benefits. With FreshBooks automatically logging all of your journal entries on the back end, all you will need to do is send a single file to your accountant that captures all of your invoice and expense data (for your given date range). This will allow your accountant to spend less time ticking and tying the numbers together, and more time actually interpreting those numbers and giving you advice on improving your business.
When should I be using it?
Typically you would be sending journal entries to your accountant when you need to report on a new period (example: year end). If you have an accountant, let them know you have this ability the next time you work with them.
If your Accountant does their financials in QuickBooks, then the days of manually transferring totals from FreshBooks to QuickBooks is over, the .iif format will transfer everything directly into their QuickBooks system. The .iff format is selected by default when you export your journal entries from FreshBooks.
How do they work?
From within your FreshBooks account you can send your accountant journal entries for any time period after Sept 1, 2012, with 2013 selected by default. To get the step-by-step on how to do this click here.
- Note that .iif supports QuickBooks Desktop Pro, 2011 version and onwards.
I’m an accountant – seriously, how do they work?
For the details on exactly how FreshBooks writes journal entries and how to import into QuickBooks, please see our Overview for the Accountant