When To Use Write Checks, Expenses, Receive Payments And Journal Entries

Most damaged QuickBooks files share the same pattern: every unusual situation is forced through a manual Journal Entry. The forms that Intuit built, Write Checks, Enter Bills, Receive Payments, Credit Card Charges, exist for a reason. They post to all the right ledgers and sub‑ledgers automatically.

8.1 Day‑to‑Day Spending

• Write Checks: For physical cheques, EFTs and direct debits coming out of a bank account. You can still type “EFT” or “DD” instead of a cheque number.
• Enter Bills + Pay Bills: When you want proper Accounts Payable, the bill is one transaction, the payment later is another.
• Enter Credit Card Charges: For expenses paid on a card so that you can reconcile the card separately.

8.2 Customer Money

• Create Invoices + Receive Payments: This is the default for work you bill after the fact. “Receive Payments” should always be used instead of a Journal Entry when clearing an invoice.
• Sales Receipts: For situations where money and sale happen at the same time, retail counters, instant card payments and so on.
• Customer Deposits / Retainers: Use separate liability accounts and proper forms instead of dumping everything into Undeposited Funds with Journal Entries.

8.3 When A Journal Entry Is Appropriate

• Accountant‑level adjustments such as depreciation, accruals and year‑end reclassifications.
• Opening balances when you first set up the file, as long as you understand the impact on each account.
• Rare corrections where no native form exists and you are sure which ledgers should move.

If you are not comfortable with debits and credits, treat Journal Entries as “accountant only”. Use the standard forms for everything else. Your reports will tie out far more easily and future consultants will not have to undo years of strange postings.