A presentation journal changes the final trial balance that the accounts are built from, and nothing else. It is never sent to Xero, QuickBooks or Sage and it leaves imported figures as they were. Use it to square off a penny of rounding, or to show a figure on a different line of the accounts.
When to use one
- Rounding: the trial balance is out by a penny or two because of how the bookkeeping software rounded.
- Disclosure: a balance is right in total but should be shown differently in the accounts, for example part of a creditor moved to a different heading.
For a real change to the books, such as an accrual or a missed invoice, post a journal instead. That keeps your bookkeeping and your accounts in agreement.
Start with the Balance Check
On the Trial Balance tab, two buttons sit above the first heading: Presentation Journal and Balance Check.
Balance Check opens the Balance Sheet Breakdown. It sets net assets beside equity (the profit for the year plus capital and reserves) and gives the difference. Green means they agree. Red means they do not, and the accounts will not balance until they do.
Example Fabrication Ltd is out by exactly 1p. For that case the window offers Create rounding journal, which opens a presentation journal already described as “Rounding adjustment”. For a larger difference, look for a missing or miscoded balance rather than forcing it with a journal. If the period has prior year figures, a second panel checks those in the same way.
Create a presentation journal
- Choose Create rounding journal in the Balance Check, or Presentation Journal on the Trial Balance tab.
- Enter a Description.
- Choose Add Journal Line, pick the Account and enter a debit or a credit. Type in the account box to search. The Prior Year columns adjust the comparative figures.
- Choose Save Journal.
The accounts offered are the ones used in the statutory accounts, shown as statement, heading and account, such as “P&L - Other charges - Sundry expenses”. They are not your own nominal codes.
A journal that does not balance
A journal that fixes a 1p difference has only one side, so it cannot balance. The total row turns amber, a warning gives the difference, and saving asks “This journal does not balance. Save anyway?” Choose Save anyway.
Only leave a journal one-sided to clear a difference that is already there. A one-sided journal on a trial balance that balances will put it out by the same amount.
There is no approval step. The journal applies as soon as it is saved, and the Balance Check turns green.
See, export and delete them
Open Presentation Journal and choose View Existing Journals. The Presentation Journal List shows each journal by its description; click one to see its lines. From here you can create another, Download to Excel, or delete a journal with the bin icon. Deleting takes its amounts back out of the trial balance straight away.
Frequently asked questions
Does a presentation journal change my figures in Xero, QuickBooks or Sage?
No. It exists only in Tax Optimiser and affects only the final trial balance used for the accounts and the tax computation.
Which account should a rounding penny go to?
A small expense account such as Sundry expenses is the usual choice. Avoid the bank account and anything you reconcile to an outside statement.
My accounts are in whole pounds and do not add up by a pound. Do I need a presentation journal?
No. That is rounding to whole pounds, which the accounts handle on their own. See How rounding works in the accounts.
Does it need approving?
No. Anyone who can edit the trial balance can post one, and it takes effect when saved.