Journal Entry
A record of a financial transaction in an accounting system, documenting debits and credits to specific accounts in the general ledger.
Key Details
- Journal entries are the fundamental building blocks of double-entry bookkeeping, ensuring every transaction balances.
- Each entry includes a date, account references, amounts (debit and credit), and a description or memo.
- Manual journal entries require review and approval workflows to prevent errors and fraud.
- Automated journal entry posting eliminates manual data entry and reduces month-end close time significantly.