Wednesday, February 16, 2011

History feature in the Journal Entry Screen for QuickBooks Online

Intuit is beta testing a history feature in the journal entry screen for QuickBooks Online. This is useful because it lets you track the changes you or your bookkeeper has made to a journal entry. In other words, the record is preserved, which provides a trail of the changes that were made to the journal entry. This is helpful and time saver because you no longer have to review activity log, if you need to find out the history of changes made to your accounts. I suspect that only accountants are using this feature, but in the event you want to monitor the number of times that your book keeper has changed a journal entry you can now do it without leaving the journal entry screen.This is important because the more changes that people make to the same journal entry is an indicator of problems they are having and is an indicator of inefficiency.

As a primer, an adjusting journal entry is created to adjust account balances. Adjusting entries are used for a variety of reasons, including booking depreciation or amortization, reallocating accruals and reversing accruals of prepaid income or expenses, adjusting interest, penalties, or discounts, and entering bank or credit card fees or interest.

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