Journal Entries Transactions are a vital part of any business accounting system. They’re used to record all financial transactions – the things that show up in balance sheets and income statements. This includes recording debit and credit adjustments to ledger accounts, as well as tracking assets and liabilities that affect a company’s financial standing. Journal entries provide an official record of financial activity, so they must always be accurate, detailed, and approved before they can be posted to your books. With journal entries, you can track where your money is going and determine how certain transactions will affect your bottom line.