How to Record Journal Entries in QuickBooks Online Self-Employed
Why journal entries are not available in QuickBooks Self-Employed and what alternatives you can use instead.
Overview
QuickBooks Online Self-Employed does not support journal entries. The Self-Employed version is designed as a simplified tool for freelancers and sole proprietors to track income, expenses, and mileage -- it does not include the full double-entry accounting features found in other QuickBooks Online plans.
Why Journal Entries Are Not Available
QuickBooks Self-Employed uses a simplified, single-entry approach to bookkeeping. Journal entries are a double-entry accounting concept that requires a chart of accounts, debits, and credits. Since Self-Employed does not have a traditional chart of accounts, journal entries are not part of the feature set.
Alternatives
If you need journal entry functionality, consider the following options:
- Upgrade to QuickBooks Online Simple Start or higher -- These plans include full double-entry accounting with journal entry support, a chart of accounts, and more detailed financial reporting.
- Record transactions directly -- In Self-Employed, you can categorize income and expenses as they occur. While this is not the same as a journal entry, it accomplishes the basic goal of recording financial activity.
When to Upgrade
If you find yourself needing journal entries, a chart of accounts, or detailed financial statements (balance sheet, profit and loss by class, etc.), it is likely time to upgrade from Self-Employed to a standard QuickBooks Online plan.