Sync Journal Entry vs. Individual Orders

Introduction

There are several reasons why you should have individual orders, instead of journal entries provided by an IIF or CPA. Individual orders will report inventory and income changes, but require reconciliation.

Advantages of Individual Orders

Inventory

Each order contains SKUs and quantities. As our software makes orders in QuickBooks, the inventory decreases. 

Profit and Loss Details

Each order increases the income account of its associated products. Because you need to reconcile, you must add expenses to QuickBooks. You will get a better description of where your company is making and losing money, using individual orders.

Customer Order History

QuickBooks will compile a list of customers and orders. Journal entries will just provide a high level overview.

Disadvantages

Reconciliation

If your company receives several hundred orders a week, reconciliation could be challenging. You are likely using another inventory management solution. If your journal entry can accurately increase your income account, then go to journal entries.

Advantages of Journal Entries

Summary

There is no reconciliation. You receive an overall summary of transactions.