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).
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Good luck and remember this academy 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.