Intermediate
How to create manual journal entries on FreshBooks
Quick Answer
Manual journal entries in FreshBooks are created through the Accounting section where you can add debits and credits to specific accounts. You'll need to ensure the entry balances and includes proper descriptions for audit purposes.
Prerequisites
- Active FreshBooks account with Plus or Premium plan
- Administrator or Accountant user permissions
- Basic understanding of double-entry bookkeeping
- Chart of accounts already set up
1
Navigate to the Accounting Section
Log into your FreshBooks account and click on Accounting in the left sidebar menu. Then select Journal Entries from the dropdown menu to access the journal entry management page.
Tip
Journal entries are only available on FreshBooks Plus and Premium plans
2
Create a New Journal Entry
Click the New Journal Entry button located at the top right of the Journal Entries page. This will open the journal entry creation form where you can input your accounting transactions.
3
Set Entry Date and Reference
Select the appropriate Date for your journal entry using the date picker. Enter a Reference Number if required for your record-keeping system. Add a clear Description that explains the purpose of the journal entry for future reference.
Tip
Use consistent reference numbering to make entries easier to track and audit
4
Add Debit Entries
In the Debit section, click Add Line to create debit entries. Select the appropriate Account from the dropdown menu and enter the Amount in the corresponding field. Add a specific Description for each line item to document the transaction details.
Tip
Double-check account selections to ensure proper categorization for financial reporting
5
Add Credit Entries
In the Credit section, click Add Line to create credit entries. Choose the correct Account from the dropdown and input the Amount. Provide detailed Descriptions for each credit line to maintain clear audit trails.
Tip
The total debits must equal total credits for the entry to be valid
6
Verify Entry Balance
Review the Total Debits and Total Credits displayed at the bottom of the form. Ensure both amounts are equal - FreshBooks will show a Difference field that must display
$0.00 before you can save the entry.Tip
If the entry doesn't balance, check your amounts and account selections for errors
7
Save and Post the Journal Entry
Once your debits and credits balance, click Save Journal Entry to post the transaction to your books. The entry will immediately update your account balances and appear in relevant financial reports. You can also click Save & Add Another to create multiple entries efficiently.
Tip
Review the entry one final time before saving as posted journal entries may require administrator approval to edit
Troubleshooting
Cannot see Journal Entries option in Accounting menu
Upgrade to FreshBooks Plus or Premium plan as journal entries are not available on the Lite plan. Check with your account administrator if you're not the account owner.
Entry won't save due to unbalanced debits and credits
Double-check all Amount fields for typos and ensure total debits equal total credits. Remove any blank lines and verify decimal point placement in monetary amounts.
Missing accounts in the dropdown menu
Go to Accounting > Chart of Accounts to add missing accounts first. Ensure accounts are marked as Active and have the correct account type assigned.
Unable to edit a saved journal entry
Contact your account administrator as journal entry modifications may require special permissions. Some entries may be locked due to closed accounting periods or require approval workflow completion.
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