Double entry bookkeeping is a system standard method of financial record keeping. This has been deployed by many small as well as large companies. For more than 500 years, this is proven and useful method of financial record keeping or bookkeeping management. Merchants in Venice used to deploy this method for their financial record keeping. In double entry bookkeeping, typically transactions are maintained on two accounts. The parallel account to the main account is called liability account. For example, a company takes certain amount of loan. Now, due to that, its main account cash balance will increase. However, at the same time balance in liability account will also increase.
With QuickBooks, one can use the double entry bookkeeping method. Here are the steps for creating a double entry bookkeeping account:
- The process will typically start with logging into QuickBooks. Now, you have shall be driven to the dashboard area where you shall find many options for configuring your company account.
- To maintain two parallel account for double entry bookkeeping, the software will suggest you naming the parallel account. This parallel account is typically named as liability account, though you can name it as you want.
- Once the account is created, you need to configure the entry of transactions. In first entry account, money should be shown debited. In second account, money should be added to credit column.
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Using QuickBooks for double entry bookkeeping is always recommended. This is the finest software that helps setting up such account management method. For guidance call customer care center.