journal entries

Journal entries are records used in accounting to document financial transactions. Each entry typically includes the date of the transaction, a description, and the accounts affected, along with debits and credits that reflect changes in financial position. This process ensures accurate tracking of income, expenses, assets, and liabilities. By maintaining these records, businesses can prepare financial statements, comply with regulations, and analyze performance. Think of journal entries as detailed notes that help organizations keep their financial history organized and understandable for decision-making.