In QuickBooks Online, they build in a bunch of features to try to make it quicker and easier to do your work. The problem for most of us is, we’re too busy to take the time to learn about these features. It takes time to save time.
I was working on a client that had a lot of Deferred Income. Deferred Income is when someone pays ahead…usually putting down a deposit. The deposit is recorded as a liability until the day you earn it. For each of those deposits, I had to look back at how it was originally coded before I could reverse it. This took a lot of time.
How to Reverse a Journal Entry: As I was going through my deposits, I noticed the Reverse link at the bottom of my journal entry. The next time I recorded a deposit. I clicked Save and Reverse. Just like that, I saved myself probably 10-15 minutes next month. You just need to remember to change the date to day the income will be earned.