Financial accounting journal entries are the primary way of recording transactions for a business or other organization. They record all changes in financial position and cash flows over time, which can be used to generate reports such as income statements, balance sheets, and cash flow statements. All journal entries must show the date, a brief description of the transaction, account names, reference numbers, amounts, and source documents. Without journal entries, it would be impossible to track financial activity or compile reports. So essentially, they’re the lifeblood of your business’s financial health!