How do I enter my CPA’s ADJUSTING ENTRIES?

You gave your Balance Sheet and your Profit & Loss Statement to your CPA to have your tax return prepared. Along with your tax return, your CPA probably sent you a sheet of Adjusting Entries to be entered into your QuickBooks® file. You’ll ask, “How do I enter Journal Entries?”

The easiest alternative is to call us, and we’ll log in to your computer or cloud service remotely and enter them for you. It will only take us a few minutes! (612-235-3435)

OR

Here are the instructions to do it yourself:

1. Open your QuickBooks® file.
2. Click on the Company dropdown menu on the top line of the window and select Make General Journal Entries.
3. Enter the date given by your CPA. Usually it will be 12/31 of the prior year, i.e. 12/31/19. Occasionally it will be for an earlier year such as 12/31/18. Take your CPA’s word for it. He/she knows what they are asking and why.
4. If the CPA numbers the entries, i.e. CPA-1, type that number in the Entry No. field.
5. Tab down to the Account field. Your CPA has listed the accounts for each line item. It probably looks like this:

Debit                      Credit
CPA-1 12/31/19      Depreciation Expense             1240.00
Accumulated Depreciation                                     1240.00

To record 2019 Depreciation

The CPA is supposed to list the debited account first, and the credited account second and indented. They will sometimes label the amount columns as Debit and Credit. That’s helpful too, as business owners may not understand how to determine whether an amount is a debit or a credit. So, follow these clues to debit and credit the correct accounts. Type the CPA’s explanation of the entry, “To record 2019 Depreciation”, in the Memo field of each line.

6. Click Save & Close when done or Save & New if you have more to enter. If several journal entries were given, you can enter each one on a separate Journal Entry, numbering them accordingly, or type them all on one Journal Entry. In that case, you could add the journal entry number in the Memo Field per the CPA’s numbers. If you have Adjusting Entries on different dates, enter those on separate journal entries per the dates given.

Good luck! Call us if you need help!
612-235-3435

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