Basic journal entries are the building blocks of any business’s financial system. They record the money that flows in and out of the company, the assets that make up the business, and the liabilities it is responsible for. Journal entries are recorded at the end of each accounting period and are used to inform decisions about future financial strategies. Journal entries are essential for tracking a business’s financial performance, understanding changes in its financial structure over time, and helping to ensure accuracy in all its bookkeeping processes. Taking the time to properly develop and maintain basic journal entries will pay off handsomely in the long run.