This tutorial provides a step-by-step guide for creating a journal entry in the Financio accounting software. Follow these steps to ensure your transactions are recorded accurately.
Step 1: Log In to Financio
- Open your web browser and go to https://app.financio.co.
- Enter your login credentials (email and password).
- Click Sign In to access your dashboard.
Step 2: Navigate to the Journal Module
- Go to Transactions menu, under the Create New, select Journal.
- You will be directed to the Journal Entries page as shown below:
Step 3: Create a New Journal Entry
- Click on the + Add New button.
- A form will appear for you to input details of the transaction as shown below:
Step 4: Input the compulsory Journal Entry Details
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Account:
- Select the account type from the name list as shown below.
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- For this tutorial, I choose Cash on Hand. (owner’s capital contribution)
- For this tutorial, I choose Cash on Hand. (owner’s capital contribution)
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Debit or Credit:
- Enter 10,000 as Debit (by default currency as set to MYR if you’re a Malaysian company)
- Enter 10,000 as Debit (by default currency as set to MYR if you’re a Malaysian company)
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Description:
- Provide a brief explanation of the transaction (e.g., "Capital contribution").
- Provide a brief explanation of the transaction (e.g., "Capital contribution").
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- Click Save to save the Debit transaction. Now you will see the Debit transaction already being recorded.
- Click Save to save the Debit transaction. Now you will see the Debit transaction already being recorded.
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- If you try to save only the Debit transaction, this error will occur as shown below:
- Now, Add Line Item to record another 10,000 Credit transaction to ensure the total Debit equals the total Credit as shown below. If not, you cannot save the journal entry.
- If you try to save only the Debit transaction, this error will occur as shown below:
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- Once you choose your capital Account. For this tutorial, I choose Shareholder’s Capital. Enter 10,000 as Credit transaction and click Save, you’re good to go.
- Ensure the total Debit equals the total Credit. If not, you cannot save the journal entry.
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- Click Save to save this Approved New Journal and you will see this success message as shown
- Click Save to save this Approved New Journal and you will see this success message as shown
Step 5: Review and Verified
- Double-check the following:
- Date
- Date
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- Check Accounts selected
- Check Accounts selected
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- Ensure Debit and Credit amounts are equal
- Description of the transaction (recommended)
Step 6: Verify the Entry
- Go back to the Transactions > Transactions List.
- Under Action > Click View/Edit.
- Locate the newly created entry and review it to ensure all details are correct.
Tips for Accurate Journal Entries
- Always ensure your Debit equals your Credit for each transaction.
- Use clear and concise descriptions for better tracking and audit purposes.
- Regularly reconcile your accounts to identify and correct errors early.
Now let’s do the exercise below
Example Scenario = Journal Entry
Transaction: Owner invested MYR10,000 into the business and purchased office supplies worth MYR500.
Date | Account | Debit (DR) | Credit (CR) | Description |
2025-01-20 | Cash | 10,000 | Capital contribution | |
Capital Account | 10,000 | Owner invested cash | ||
2025-01-20 | Office Supplies Expense | 500 | Purchased office supplies | |
Cash | 500 | Paid in cash |
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