Journal entries are the recorded financial transactions of a business, used to update the general ledger. The journal is the first step in the accounting cycle as it records all of a business’s financial activity—from sales and receipts to expenses and payments. These entries are then posted to the appropriate accounts within the general ledger, which allows businesses to track their income, expenses, assets and liabilities. Accounting professionals use journal entries to properly record these financial activities, ensuring accuracy and transparency in a company’s finances.