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Accounting
Journal Entry
The basic building block of accounting — a record of every financial transaction with debits and credits.
Every accounting system starts with journal entries. They must always balance (debits = credits). At the end of the period they are posted to the general ledger and used to create financial statements.
Even small businesses use journal entries in tools like Xero or QuickBooks.
It's the official diary entry for every single pound that moves in or out of the business.
Real world: When a Shopify store receives £500 from a customer, the accountant records a debit to cash and a credit to sales revenue. Every transaction gets a journal entry.
💡 Journal entries are the DNA of all accounting records.