Using Journals

You can use Journals to keep a record of your business transactions.

Debiting is money being added to a nominal and crediting is money being removed from a nominal.

We strongly recommend that you consult your accountant before creating any journals.

You can use journals for the following purposes:

• VAT adjustments - changes the VAT liability on a VAT return.

• Opening balances - records opening balances for existing businesses.

• Wages - records salary and tax information instead of using one of our payroll apps.

• Year End - a journal is automatically created to moves all the money from your profit and loss nominal codes to a retained profits nominal code.

• Assets and depreciation - manages the value of assets and depreciate them regularly.

• Prepayments and accruals - used to spread the annual cost or income across several accounting periods (such as an annual insurance or subscription).