The QuickBooks general ledger report shows transactions for a particular date range. It displays transactions from all accounts, like equity, cash, accounts receivable, and undeposited funds. The QuickBooks general ledger allows users to prepare, calculate income, financial expenses, and maintain the accounts up to date every time. Moreover, the data also gets synced with the user’s device that enhancing the accounting experience even more.
We get a lot of questions about how to find and print a ledger report. That is what inspired us to write a detailed article about the General Ledger QuickBooks for you. Here, you will learn how to “find and print general ledger reports in QuickBooks” and how you can create journal entries easily for General Ledger. Let’s understand what exactly is QuickBooks General Ledger in Detail.
QuickBooks General Ledger: All Explained
General Ledger QuickBooks Report shows how a company manages and controls its money flow. This report displays a list of transactions for a particular date range across all accounts. A few examples of general ledger accounts are cash, equity, accounts receivable, and undeposited funds. QuickBooks utilizes the double-entry system of bookkeeping, which needs you to record an offset credit for each debit in your account. These transactions can also be recorded using journal entries. Accounting professionals who don’t follow traditional accounting norms also create a general journal. This report must be maintained and backed in case any transactional or accounting errors show up.
Note: For this purpose, users can use “Transaction Details” from “Account Report”.
Basic Terminologies of QuickBooks General Ledger
When accountants perform manual record-keeping, we get separate journals for every task. Following are the three major journals.
- Accounts Receivable: It’s a daily record of sales and receipts of the company and invoices that the customers have not paid.
- Accounts payable: A daily record of purchases by the company and any invoices that the company had to pay.
- Payroll: This is the record of every employee’s compensation and the checks written to pay them.
In the general ledger, “the Books”, enter the summary of monthly activities, it’s the master record of any company. Journal entries are made using double-entry systems. The company’s books will be balanced if everything is entered correctly. This means that if you add up all the balances in each account, your total would be zero.
To turn on the functions of QuickBooks general ledger, there is a process. For generating financial statements, it uses double-entry accounting. To work out, it needs to have both a credit and debit card along with some dollars.
You can use it with cards and other amounts with the following criteria:
- Credits and debits must have the same dollar amount.
- The number of credit and debit accounts should not be identical.
- Each journal entry can contain at least one credit and debit entry.
Double-entry keeps the accounting balance and follows the balance sheet formula to maintain the balance. The business assets are shown by the addition of liabilities and owner’s equity. Remember to follow the procedure below for your balance sheet.
Read to know: The best tool to resolve Quickbooks connection issues
How Does The General Ledger QuickBooks Report Work?
QuickBooks general ledger follows a specific process to turn on its functions for the users. It follows the double-entry accounting method to generate financial statements. This needs both debits, credit cards, and dollar amounts to work out.
It has some criteria to function with the cards, and amounts like;
- The dollar amount of credits and debits must be the same.
- The used number of debits, and credits account, should not be equal.
- At least one debit and credit entry are allowed for each journal entry.
The double-entry method keeps the accounting balance. And it follows the balance sheet formula to keep it in balance. The adding of liabilities, and owner’s equity shows the business assets.
Always remember that you are following the below procedure for the balance sheet;
Liabilities + Owner’s equity = Assets
Types of General Ledger Accounts
Typically, there are 6 types of General Ledger Accounts. These are listed below:
1. Accounts of Assets
Assets are simply the resources that your company has. The asset account has the following things.
- Accounts Receivable
- Land and Structure
- Machinery and Plant
2. Account for Liabilities
The liabilities means the sums owed to persons or third parties. Some liabilities examples are:
- Exceptional Expenses
- Accounts Receivable
- Long-Term Credit
3. Shareholders Equity
The shareholder’s equity is basically the excess of the asset over liabilities in a company. Some stockholders examples are:
- Common Stalk
- Retained Earnings
4. Accounts of Operating Income
Income earned by your main business activities is operating income. It includes:
5. Accounts for Operating Expenses
These are the expenses that are important to incur to run your company on an everyday basis. These include:
6. Accounts for Non-Operating Income
Non-Operating Costs and revenues are one-time expenses or incomes that you earn. Non-operating costs and income include:
- Gain on Asset Sale
- Assets Sold at a Loss
- Interest Charge
- Income from Dividends
- Interest Earnings
- How do I make General Ledger entries within QuickBooks?
Follow the steps to create entries for the general ledger report QuickBooks of undeposited funds.
- Firstly, open QuickBooks.
- Navigate to “Menu”.
- Now tap on “Company” and choose the option “Make General Journal Entries”.
- Pick the Date field to select the correct date for the QuickBooks ledger entry.
- Select the Entry Number file then input a value there. After this, all the following general ledger entries will be automatically numbered.
- Thereafter, select the “Account” and choose the account that you will be using for your debit.
- Now mention the debit value of your transition under the “Debit Column”.
- If you wish to add a message with the entry, simply click on the “Memo” box.
- Complete the remaining information by entering the vendor, customer, and name for your transactional record.
- Use the credit the same way to indicate a deposit or to enter a new transaction. To even out the balance sheet transaction, it is important that you use the same information and amount as in the debit column.
- Finally, tap on Save & Close when the transaction register reaches zero. If it still does not show zero, then check all details again and click Save & Close.
Important Note: Users can use the feature “Journal Entry” to track miscellaneous transactions that don’t belong in the transaction register.
How do I Run General Ledger in QuickBooks?
Follow the steps below to create a QuickBooks general ledger report.
- Firstly, open QuickBooks.
- Tap on “Reports”.
- Go to the bottom of your screen and choose the option “All”.
- There, you will see the option “My Accountant”. Just tap on it.
- Choose the 6th option that is “General Ledger”.
- Select the date of your transaction range and select between Accrual or Cash basis.
- Finally, tap on the option “Run Report” to generate it.
How do I Create a New Account for QBO General Ledger Entry?
These steps will help you create a new general account.
- Firstly, open QuickBooks Online.
- Now click on “Accounting”.
- Then tap on “Chart of Accounts”.
- Thereafter select “New”.
- Select an account by clicking on the drop-down menu “Account Type”.
- In a similar process, select a “Detail Type” then provide the Beginning Balance.
- Finally, tap on Save & Close.
How do I Print General Ledger in QuickBooks?
These steps will guide you on how to print a QuickBooks general ledger report.
- Firstly, open QuickBooks.
- Then select “Print Reports“.
- Thereafter, tap on “Transaction Reports” and choose the “General Ledger” option.
- Here, enter the month as well as the year and leave the rest of the field empty.
- Finally, preview it and tap on “Print”.
We hope this post has helped you understand everything about QuickBooks General Ledger. It’s pretty clear how important it is for all accountants and businesses. If this post interests you then you can visit our website to access more related articles QuickBooks Payroll Updates Tax Table, Bank Feed Issues, & more. They are surely worth your time!