Here’s a tool to help you keep track of your accounting general ledger journal entries…
Have you ever posted an entry and then went back and said, “Now, why did I do that?”
It’s not that uncommon. Don’t beat yourself up. Some journal entries are prepared by outside sources (bookkeeping services, tax accountants) and you just may not be familiar with them. However, even if you don’t create the journal entry, make sure you understand why you are posting it.
Other journal entries are derived from accounting schedules or payroll summaries and are fairly routine. Either way, you should be tracking your journal entries and have an easy way to justify each one.
An easy way to keep track of your journal entries is to have a binder with the following:
- An excel spreadsheet that tracks your journal entries (see example below)
- Supporting documents for journal entry attached (or note location where they are kept)
- Section for financial reports (print reports monthly as part of your internal controls)
- Section for financial schedules (such as a depreciation schedule or amortization schedule).
The first page of your binder should be your “Month End Closing Procedures” (what? You don’t have that written out! Click here, for an example of monthly closing procedures for your accounting department).
Our nonprofit accounting software and church accounting software blog discusses accounting, tax, and specific Aplos functionality issues. Scroll through the blog categories and click the topic that you are interested in. All blogs are the property of the author. ©Permission granted to post blog in its entirety if credit to author and link to www.aplossoftware.com/blog is also included. If you’d like a copy of the spreadsheet, just email firstname.lastname@example.org.
Good luck and remember this blog is not meant to be a substitute for professional services, just a helpful resource. Always consult a CPA or trusted professional if you seek tax or accounting advice.