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Journal Entry Guides

This section explains how to record and manage all types of financial transactions in Fiskl. Understanding journal entries helps you maintain accurate books, track money movements, and generate reliable financial reports.

Why Master Journal Entries​

Journal entries are the foundation of your accounting system. Every financial activity in your business—from receiving payments to paying vendors—is recorded through journal entries. Proper transaction management ensures:

Accurate financial records:

  • Track every dollar flowing in and out of your business
  • Maintain a complete audit trail for all transactions
  • Support tax compliance and financial reporting requirements

Better financial visibility:

  • Understand your cash flow patterns
  • Monitor spending across categories and accounts
  • Identify trends in revenue and expenses

Simplified reconciliation:

  • Match bank transactions with accounting records
  • Resolve discrepancies quickly
  • Maintain clean, organized books

Key Concepts​

Understanding these concepts is essential for working with journal entries in Fiskl:

  • Journal Entry (Account Transaction): A record of a financial event that affects at least two accounts. Every entry maintains the accounting equation: Assets = Liabilities + Equity
  • Debit and Credit: The two sides of every transaction. In asset accounts, debits increase the balance and credits decrease it. The opposite applies to liability and equity accounts
  • Chart of Accounts: The organized list of all accounts where transactions are recorded. Understanding your chart helps you categorize transactions correctly
  • Matching: The process of linking related transactions together, such as connecting a bank payment to an invoice or expense
  • Splitting: Dividing a single transaction across multiple categories, accounts, or currencies for detailed tracking
  • Base Currency: Your primary business currency. All foreign currency transactions are also tracked in your base currency
  • Opening Balance: The starting amount in an account at the beginning of a financial period, representing all activity before your records begin

How Transaction Recording Works​

Fiskl provides multiple ways to record financial activities:

  1. Automatic recording: Bank connections import transactions automatically. Invoices and bills create journal entries when saved
  2. Manual entry: Record cash transactions, adjustments, or activities not captured automatically
  3. Matching: Link imported bank transactions with existing records like invoices or expenses
  4. Splitting: Allocate complex transactions across multiple accounts or categories

The system maintains double-entry bookkeeping automatically. When you record money leaving one account, Fiskl ensures the corresponding entry appears in the receiving account or expense category.

Transaction Types You'll Record​

Different business activities require different transaction types:

Operating transactions:

  • Manual entries for cash purchases and daily operations
  • Matches between bank imports and existing records
  • Split transactions for complex expenses

Accounts Payable:

  • Bills and vendor invoices you'll pay later
  • Payment tracking against outstanding bills
  • Vendor credit management

Accounts Receivable:

  • Customer invoices awaiting payment
  • Payment receipts and applications
  • Client credit tracking

Internal movements:

  • Transfers between your bank accounts
  • Currency conversions and exchanges
  • Equity contributions and distributions

Period management:

  • Opening balances for new periods
  • Adjusting entries for accruals
  • Closing entries at period end

Available Guides​