In this article, we'll go over some of the features of the journal in Billy. The journal is where accounting and bookkeeping professionals can manually add transactions to the system.
First, it'll be helpful to watch this brief video tutorial on how to use the journal.
In Billy, there are three different ways to make journal entries. They are represented in the first dropdown menu by the letters J (journal entry), C (customer payment) and V (vendor payment). We'll go through an example of each in this article.
You'll always be able to select a journal entry number for each set of entries. Just note that the transaction number associated with the journal entries will not be the same.
It's important to set the date for your journal entries. You can also add attachments to your entries by clicking on the paperclip icon to add attachments to a particular entry.
Any entry added on this page will automatically be saved, even if it isn't approved. It's best practice to draft your journal entries throughout the month, then approve them at the end of each month before preparing a trial balance.
In this section, we'll go through the basic workflow associated with adding a journal entry. If you're familiar with other accounting software packages, this will be pretty self-explanatory. If not, don't worry! We've made Billy as easy-to-use as we possibly can.
Description: The description box is where you can enter some details about the transaction you're entering.
Account: The account box is where you can select which account you want to be effected by your entry. If you don't see the account you're looking for, you can add one right on the spot as well.
Tax Rate: The tax rate box allows you to select a sales tax rate that is applicable for a given transaction. For example, if you're recording the sale of goods to a customer, you'll want to ensure that your normal sales tax rate is selected. It should be noted that all entries in Billy are net of tax.
Debits and Credits: Of course, your accounting system wouldn't be complete without the debit and credit columns. Here you can add the amounts that you'd like to have debited or credited to your account. Just remember, debits must always equal credits (Billy won't accept the transaction if these don't add up).
When recording a complicated transaction, you might need to add more lines to complete the transaction. On the right side of the screen after the debit and credit columns, there are some arrows. You can hover over these arrows to modify your transaction.
Duplicate: You can create two copies of the transaction by clicking the first icon in this set.
Delete line: You can remove the the line by clicking on the trash can icon.
New line: You can add a new line to the transaction by clicking the '+' sign.
When you're entering a complicated transaction with multiple lines, it's useful to visualize where your debits and credits are going. You can preview your entry by clicking on the preview button on the bottom right corner of the screen.
If you're entering a lot of transactions at once, you can minimize this preview window to save space.