Overview
Journal entries are essential in accounting, recording every financial movement to keep your records accurate and up-to-date. If you use an accounting platform alongside ServiceTitan, understanding journal entries helps maintain consistency and accuracy in your financial data across both systems.
Who uses this feature
Administrators, office employees, managers, accountants, and bookkeepers
Applies to all business types
Applies to all trades
Feature configuration
Account configuration is required to use this feature. Please contact Technical Support for details.
The View journal entry landing page is required to use this feature. Please contact the account administrator on your team.
Best practices
Keep in mind that all transactions start in ServiceTitan. If you make updates to a journal entry or transaction in your accounting platform, those updates are not reflected in ServiceTitan.
Make sure that your general ledger accounts and classes configured in ServiceTitan match the same accounts and classes in your accounting platform. Mismatches lead to errors.
Understand what information is managed by ServiceTitan. The key information managed in ServiceTitan could be part of your accounting workflow. Understanding how to navigate your tasks in ServiceTitan prevents confusion.
Accounting integration types
The two primary types of accounting integrations in ServiceTitan are document-based integrations and journal entry-based integrations. Each integration offers unique advantages, depending on your business needs.
Document-based integration
When using a document-based integration, each integrated transaction creates a customer record that includes the customer address and phone number. Additional transaction details are also included in the record. For example, an invoice with line items, SKU numbers, rate, quantity, and associated general ledger (GL) accounts can be included in this single record.
Journal entry-based integration
Journal entry-based integration allows you to create and export journal entries to your accounting platform. Unlike document-based integration, journal entries are simple records of individual transactions that focus more on the financial impact of these transactions on your financial statements. Journal entries include simplified transaction details such as date, description of the transaction, affected accounts, and the amount.
Benefits of using journal entry-based integration
Simplified data: The simplified data used in journal entries eliminates many points of failure that can occur. Each accounting system has unique requirements that can cause errors if the requirements are not precisely met. Using a simplified approach with journal entries reduces the amount of potential errors that can occur.
Essential data: Keeping your financial records synced between two platforms can be time-consuming and challenging. Journal entry-based integration focuses only on essential financial data while keeping your operational data within ServiceTitan. This makes reconciling easier since you are using fewer comparison points.
Compatibility: Journal entries are accepted in most accounting platforms. This gives you the flexibility and scalability to choose the accounting system that best suits your needs as your business grows.
Use ServiceTitan as a sub-ledger with journal entries
Using journal entries doesn’t require you to store all customer data specifically within your accounting software because ServiceTitan acts as a central hub for managing customer information. This keeps all your customer details organized and accessible in one place.
You can use ServiceTitan as a subledger for accounts receivable (AR), accounts payable (AP), inventory, and payroll. You can also integrate with your general ledger (GL) for financial reporting and workflows not related to ServiceTitan, such as managing equity and loans payable. However, for core subledger activities, ServiceTitan provides all the necessary functionality, while you integrate the financial data for comprehensive financial reporting and general ledger services.
To use ServiceTitan as a sub-ledger, the following data must be managed within ServiceTitan:
Customer Record Management (CRM)
Accounts Receivable
Invoices
Payments/Deposits
Accounts Payable
Purchase Orders/Bills
Vendors
Current Liabilities
Sales Tax
Deferred Revenue
Inventory
Transfers
Adjustments
Payroll
Timesheet records
Performance pay records
Want to learn more?
Visit ServiceTitan Academy and enroll in Accounting Basics