Easy Tech TutsHow to Do Adjusting Entries in QuickBooks Online Easily 2026
By Impran M N
Closing out an accounting period cleanly requires adjusting entries for things like accruals, prepaid expenses, or depreciation, and getting the debits and credits balanced matters for an accurate audit trail. This guide covers recording an adjusting entry in QuickBooks Online correctly.
01Open the Journal Entry form
Click the + New button, then choose Journal Entry under the Other column.
02Set the period-end date and reference
Enter the official period-end date and assign a unique, sequential reference number.
03Flag it as an adjusting entry
Check the Is Adjusting Entry? toggle so the line is specifically marked for period closes.
04Enter your debit and credit lines
Choose your target account and enter the debit value on the first row, then select the offsetting account and enter the balancing credit on the second row.
05Save and verify
Confirm the totals row shows a perfect balance, click Save and Close, then run a fresh Trial Balance or Profit and Loss to verify the adjustment posted correctly.
Frequently asked questions
Why does QuickBooks require debits and credits to match exactly?
Double-entry accounting requires total debits to equal total credits before the form validation will let you save the entry.
What does the Is Adjusting Entry toggle do?
It flags the transaction specifically as a period-close adjustment, giving your accountant clearer context during an audit.
How do I confirm my adjusting entry posted correctly?
Run a fresh Trial Balance or Profit and Loss statement afterward to confirm the adjustment reflects accurately.
Can I use this method for depreciation entries too?
Yes, depreciation adjustments follow the same manual journal entry process, mapping to the appropriate asset and expense accounts.
Watch the full walkthrough
The same steps, demonstrated on screen from start to finish.
