Accounting is a tough job to do. An accounting journal helps to ease this task a little. Such journals are used to keep track of the financial transactions and orders occurring in the company or business. The information provided in the document is displayed in chronological order. Accounting Journal Templates are used to make these journals. Such journals have now been made mandatory to be used by all finance and accounting departments of companies.
7 Steps On How to Make an Accounting Journal
Step 1: Identify the Accounts
Accounting journals are kept by the accounting and finance departments of all kinds of businesses. And no large corporation has less than two accounts to use for their transactions. The first step, hence, in making the journal is to identify the number of accounts. Based on the number of accounts available for use, the type of entry into the journal will also be decided. When no more than two accounts are involved, there will be a simple journal entry. When more than two accounts are involved, there will be a compound journal entry.
Step 2: Identify the Type of Accounts
As already established, there can be two types of journal entries. However, no matter what kind of entry you are making into the journal, there have to be at least two types of accounts involved. To determine the type of account that will be used for your accounting journal, you can avail of two options. You can either use a conventional approach or a modern approach. The traditional approach determines personal and real accounts. The modern approach determines asset, liability, capital, and other such accounts.
Step 3: Enter the Date and Period
When you start to make the accounting journal, the first thing that you need to input is the date and the period of the account. Be mindful when you are inputting the date of the entry. A wrong date will lead to wrong calculations. Regarding the time, an accounting journal is made for a specific time. Before you start to make entries into the journal, you have to determine the period for which you would be calculating the transactions.
Step 4: Mention the Accountant Details
Once you know what to include in the accounting journal, you need to include the details of the accountant who is in charge of providing all the accounting details. The information mentioned should include the name of the accountant, the title, and the contact details. Such information is mandatory for the journal as he or she is the only person liable for the information in the journal.
Step 5: Input the Entry Details
Sometimes, inputting the details of a transaction requires authorization from a higher authority. If such is the protocol of your organization, then make sure to do the needful. After that, you need to input the unique entry ID. Every transaction has a distinct number attached to it. This serves as the entry ID. This ID helps to distinguish that particular transaction from the others. You also need to mention here if the entry is a one-timer, a reversing one, or a recurring one.
Step 6: Apply Accounting Rules
There are three golden rules of accounting that you can apply to debit or credit with the respective currency value. For a real account, when a product comes in it is debit, and when it goes out it is credit. For a nominal account, when the company suffers a loss it is debit, and when the company suffers profit, it is credit. For a personal account, if the body is receiving something it is debit, and if the body is giving something away it is credit.
Step 7: Record the Transaction and Provide Required Documentation
The final step of making the journal is to record the transaction. Before this, you need to check if any documentation is required for the recording. Such as some companies have protocols that state that the reason for recording the transaction needs to input. At the very least, you have to provide a short description of the journal.
7+ Accounting Journal Templates
1. Financial Accounting Journal
The task of accounting is anyway a difficult job. Without a proper accounting journal, this task becomes a whole lot harder. That is why we are providing you with this accounting entry journal template. This template will help you make good accounting journals that are suited to your needs. The template can be edited and downloaded in PDF format.
2. Sample Accounting Journal Template
An accounting journal is made to record the details of transactions that occur in an organization. If you want to make such a journal for your organization too, then you need to make use of this journal template. This template has been designed to help you a make proper accounting journal for the proper management of your finances.
3. Accounting Journal Entry Template
Entries into notary journals can be made of two types. You can either make a simple journal entry or you can make a compound journal entry. However, no matter what kind of entry you are making, you can make use of this journal entry template. This template is very simple and easy to use. You can download the template in PDF format.
4. Accounting Journal Entries Policy
Every company has a policy in place for inserting journal entries. If you have been tasked with making the accounting journal but are not aware of this policy, then this journal template is for you. This template comes with a general journal entry policy that you can follow to make the accounting journal for your needs.
5. Accounting Journal Report Template
An accounting journal report is made after the calculations regarding the transactions have been made. Making such a report without knowing the proper process can be dangerous to the company. Which is why you need our Accounting Journal Report Template. This template provides distinguished categories such as parameter name, required, default, description, etc.
6. Accounting Journal List Template
With this accounting journal template, you can get your hands on a file containing an accounting journal list sample. The template contains original and suggestive headings and content written by professional writers. The template can be used to make a list of all the transactions occurring in the organization. The template is fully editable and printable. You can also use the template to make an accounting spreadsheet.
7. Accounting Journal Entries Example
Are you rookie at making accounting journals? Then we suggest that you take a look at this journal template we are providing. This template comes with an example of an accounting journal that can assist you as a guide to making yours. You can also customize the file to form a dialectical journal.
8. Environmental Accounting Journal Template
Without a solid accounting journal in place, there would be no tracking and management system for the transactions that occur in a business. Do not let such a thing happen to your company and make an accounting journal for record of your business dealings with the help of our journal template in PDF. To use this template, all you have to do is download the template in the available format.