Ledger by Inspire Tax
FREN
Back to app
Accounting cycle

Create an adjusting entry, plus the four advanced options

Adjusting entries are how you correct, reclassify, or complete the client's trial balance during preparation. Ledger keeps them separate from bookkeeping operations so you always see, at the review stage, which numbers came from the bank and which came from your judgement. Four advanced options cover the special cases : prior-year adjustments, reclassifications, manual operations, and inter-company mirrors.

About 4 min Prerequisite : trial balance imported
1

Open Adjusting entries and click New entry

In the engagement's left menu, click Adjusting entries. Click New entry at the top right. A dialog opens with the date pre-filled to the fiscal year end, and one empty debit/credit line.

2

Fill in date, description, and lines

Set the date (must be within the fiscal year), a short description (« Q4 GST/QST accrual », « Reclass owner draws », etc.), then add one line per account impacted : pick the account, enter debit or credit. Choosing an account on the last line automatically adds a new one below, spreadsheet-style; the Add a line button remains available.

A badge at the top right tells you if the entry is Balanced (green) or Unbalanced (red). It updates in real time as you type.

3

Attach supporting documents (at any time)

The Attachments block is always visible, not hidden behind advanced options. Drag and drop a PDF (invoice, bank confirmation, contract) or click to upload. Attachments stay linked to the entry, appear in the review, and travel with the file if you export.

4

Verify the balance and save

Once Balanced, click Save. The entry appears in the list with a JE- number and is immediately reflected in the trial balance's « Reg. » column.

The four advanced options

Click Advanced options at the bottom of the dialog to reveal four checkboxes. Each one changes what the entry means and where it lands. They are mutually exclusive : one at a time.

PYA

Prior-year adjustment

Fixes an error found in the prior year (N-1) that shouldn't affect this year's P&L. Ledger books it against retained earnings automatically. Sub-option : « Also post prior year's restated net income to retained earnings » for full closure.

RECL

Reclassification, presentation only

Transfers an amount from one account to another for financial-statement presentation. It affects the adjusted trial balance, the statements and the ledger like a normal adjusting entry, but never touches the client's actual books : it is not carried forward at year-end roll-over, never pushed to QuickBooks, and excluded from tax computations. Marked with a RECL badge, easy to spot at review.

OP

Manual operation entry

An entry that mimics a bookkeeping operation (a missed bank transaction, an owner contribution). Includes a sub-choice for tax destination : current period, or a restatement. Marked with an OP badge.

Mirror

Inter-company entry (group)

Available only for clients in a corporate group. Creates the entry in this client's file and mirrors the opposite entry in another selected client of the group, in one action. Only at creation time (can't be applied later).

Tips

i
Bookkeeping operations vs adjusting entries

The Operation column of the TB (read-only) aggregates entries from Bank transactions. The Reg. column aggregates your manual adjusting entries. Keeping them separate lets you see, on any account, what came from the bank and what came from your judgement.

✓
Import from the prior year

Under the New entry button, Import from prior year lists last year's entries with two actions per entry : Copy (reproduce the same debits/credits) or Reverse (post the opposite, to unwind a year-end accrual).

File done? Push everything into the client's QuickBooks

When adjusting entries are final (file reviewed and signed off), the QuickBooks button at the top of the Adjusting entries page pushes each entry into the client's QuickBooks Online, one journal entry per adjustment, flagged « Adjusting Journal Entry ». This is the step that saves the client (or you) from retyping everything into their books : their balances catch up with your financial statements in one send.

Full walkthrough, options (document prefix, Adjustment flag, tax lines) and common errors : Push adjusting entries to QuickBooks.

Frequently asked questions

Can I edit an entry after saving ?

Yes, as long as the fiscal year isn't frozen. Click the entry to reopen it, change what you need, save. The TB updates instantly.

Why can't I select this account in the picker ?

The account picker is strict : only accounts that exist in the TB show up. If an account is missing, add it in the trial balance first (button « Add a row »), then come back.

The list of entries is long, how do I find one ?

A search bar at the top filters by code (JE-42), description, account, or amount. Combine with the count « X / Y entries » to see how many are matching.