It’s time for another post in Devine Dictionary. Today’s word is journal entry.
Think of a journal entry as an actual journal entry! We all see it in our head, a 13-year-old sitting in their room writing down what happened to them that day. In the accounting world a journal entry is very similar, it is recording transactions for the business. Simply put, journal entries are made to adjust any account. They can be used to make corrections, record transactions that may have not went through the bank feeds and more. Another big use is to record payroll! Sometimes payroll doesn’t automatically get added, so it is very important to make sure that you add that in correctly. There are lots of other reasons for journal entries, but those are a few examples. Now, it is important to note that you should have your accountant manage these types of entries and not try to do them on your own. Any adjustments you may make might seem minor but could wreak havoc in your books. It is always best to consult a professional.
We hope that this helped you get a better understanding of how journal entries work and how important they are to your accountant. Remember outsourcing your accounting to a professional team is a great way to ensure that your books are always up to date and accurate. That is what we do here at Devine, so give us a call to see how we can help be an asset to your business! 281-545-4000.