A transaction journal is an important record-keeping tool used in business to track all financial transactions, such as payments, sales, purchases and liabilities. These records provide essential, up-to-date and comprehensive information on the financial position of a company at any given time. The transaction journal captures virtually all activity associated with a specific account or line items within an account, and it can be used to audit past entries or to easily monitor business expenditures. By creating a detailed yet concise journal of your organization’s financial activities, you can ensure accuracy and help reduce costly errors in the future.