A Debit Credit Journal Entry is a record of a financial transaction that reflects the flow of funds in a company’s accounting ledger. The debits and credits are used to document the movement of money within the business, such as when purchases are made, or when services are rendered for payment. The entries must be made accurately and legibly so that the business can review all transactions, monitor income and expenses, and track cash flow. It’s an essential part of any business’ bookkeeping process!