Introduction to journal transactions

Let's talk about the basics of journal transactions, and how to enter them in Wave.

What's the deal with journal transactions?

Most transactions in a business occur when money changes hands, or will change hands. A journal transaction, also called a journal entry, is different; it's used to enter business activity that doesn't involve money changing hands. Examples of common journal entries include:

How do I make a journal transaction?

You can make journal transactions on the Transactions page:

You can also upload journal transactions using Wave Connect!

What else do I need to know?

Every journal transaction needs to "balance," or in other words, the debits and credits have to total to the same amount. If you create a journal transaction that doesn't balance, you'll get a warning message, and you won't be able to save it.

Why are accountants obsessed with everything "balancing?" Because in modern accounting, aka "double-entry accounting," every debit must have a matching credit, and vice versa. Both sides are created automatically in Wave for all other types of transaction!

What if I have more questions?

Check out these other articles:

Was this article helpful?
1 out of 1 found this helpful