A record of a single financial transaction in the accounting system, showing which accounts are affected.
A journal entry is how individual transactions get recorded in your accounting system. Each entry documents what happened: the date, the accounts affected, the amounts, and a brief description. Journal entries are the building blocks that eventually become your financial statements.
Most small business owners using accounting software don't create journal entries manually—the software does it automatically when you record invoices, payments, and expenses.
In double-entry bookkeeping, every transaction affects at least two accounts:
The debits and credits must always balance. This system catches errors and maintains accurate records.
Accountants sometimes create manual journal entries for adjustments, corrections, depreciation, or transactions that don't fit standard categories. If you work with an accountant, they may make journal entries at year-end to ensure your books are accurate.
Invoicer records every transaction so your books stay accurate.
Try Invoicer Free
