Manually Recording a Business Transaction in QBO

What should you do?

First, make the necessary billing changes to ensure that it doesn’t happen again (this is especially important for recurring transactions).

Next, email [email protected] with the information and your Accounting Advisor will enter into QBO for you. Just send the date, customer/vendor name, description, and amount of the transaction. Easy! This is just a part of the Bookkeeping by Collective services we offer so you can focus on your business. If you aren't enrolled in Bookkeeping by Collective, here is a link to learn more.

If you still want to handle this on your own, you need to record the transaction on the books of the business. To accomplish this in QBO, you will utilize the accountant’s magical staff - the journal entry!

Step 1

Click the "+New" button in the top left to pull up the menu pictured below, then select “Journal Entry.”

Step 2

Once the journal entry screen loads, select the correct journal entry date (set this to be the day that the transaction cleared your personal account).

Step 3

In the “Journal no.” field, enter “MBR EXP”

Step 4A (MONEY-OUT/EXPENSE)

In the first row, in the account field, select the appropriate expense category depending on the nature of the expense. Then, in the debit field, put the amount of the expense. In the description field, put a description (include vendor name here and a brief description of the expense).

Step 4B (MONEY-IN/SALES)

In the first row, in the account field, select the appropriate sales category. For most members, this is simply "Sales." Then, in the credit field, put the amount of the sale. In the description field, put a description (include customer name here and a brief description of the sale).

Step 5A (MONEY-OUT/EXPENSE)

In the second row, in the account field, select “Shareholder Contribution.” Then, in the credit field, enter the same amount used in Step 5A.

Step 5B (MONEY-IN/SALES)

In the second row, in the account field, select “Shareholder Distribution.” Then, in the debit field, enter the same amount used in Step 5B.

Step 6

Click the “Save and Close” green button in the bottom right corner.