Journal entry accounting is an organized method for tracking financial transactions. It is used to record changes in business financial accounts by inputting entries into a company’s accounting journals. This process typically involves creating/entering debits and credits, which are then posted to the corresponding accounts in the general ledger. Accounting journal entries have a direct impact on the balance sheet and income statement (profit and loss statement). They provide an accurate record of a company’s overall financial condition and can be used to audit books accurately. In a nutshell, journal entries are an effective way for businesses to track their finances and remain compliant with bookkeeping best practices.