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:
- Recording a non-cash expense, like depreciation
- Making period-end adjustments
- Adjusting an account balance
- Entering starting account balances
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!
As well, your journal transactions will appear as one transaction in the Transactions page.
What if I have more questions?
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