Both QuickBooks Desktop Versions, and QuickBooks online give you the ability to post transactions via Journal Entry. Most pieces of true accounting software will. That means that rather than creating an invoice, or entering a bill, you can just post the bare bones of the transaction into your software, assuming you know your debits and credits. However, just because you can, doesn’t mean that you should.
QuickBooks is a very powerful piece of software for the price point, and can provide you with a whole host of information about your business if you use it properly. Although posting your transactions by journal entry will give you an accurate income statement and balance sheet, that is pretty much all you will get.
Within QuickBooks there are modules – the Accounts Payable module to record your purchases and payments to your suppliers; the Accounts Receivable module to record your customer invoices and payments, Payroll module to track your employee payments and of course the Sales Tax Module. All of these modules interact with each other, and give you the ability to create meaningful and important information about your business.
Who is your best customer?
How long does it take you to get paid by your best customer? By your worst customer?
How much did you sell of Widget A last year?
Which Vendor do you do the most business with that you can negotiate a volume discount?
These are just a few of the examples of the kind of information that you can get when you use the QuickBooks module. None of that information can be obtained if you use journal entries.
If you want to get more out of your financial information than just your Balance Sheet and Income Statement, close that Journal Entry screen, and start using the modules within QuickBooks to get you the most valuable information out of your entries.