Note: Journal entries in PayHOA function as they do in accounting. This article contains a journal entry cheat sheet to help understand what a debit does and what a credit does to different aspects. For a journal entry, there must be one item debited and one credited.

When Should a journal entry be used?

Journal entries should mainly be used on specific adjustments. An example of this is, an owner paid their January 2022 invoice in December 2021. The payment is currently going toward your 2021 yearly income numbers, but belongs in 2022 instead. Journal entries would be used to fix this issue.

Journal Entry Cheat Sheet: Debit vs. Credit

Note: If you are unsure if a journal entry should be used for a situation, feel free to ask our support team at support@payhoa.com!