Common Journal Entries are the bookkeeping records used to document financial transactions for businesses. They represent a consistent format of tracking the flow of money in and out of a company’s accounts, allowing companies to recognize patterns in their cash flow. Common Journal Entries are completed on a periodic basis, usually at the end of each fiscal year or accounting period, to record all business activities during that period. These entries include documenting revenue earned, expenses incurred, assets purchased, liabilities assumed and capital contributions made by owners. By keeping accurate records of a company’s financial transactions, Common Journal Entries form the basis for reliable financial reporting and decision-making.