Journal entries are the first step in the accounting process. They are used to document all financial transactions of a business, and provide an accurate record of a company’s financial position. Essentially, they are a way of capturing and organizing each financial transaction that occurs within an organization. Every time money is exchanged, a journal entry is made to capture it. By logging every transaction and recognizing any potential errors or omissions, businesses can ensure that their financial statements accurately reflect their activity. With good journal entries, companies can rest assured that their finances are well-organized and accurate.