A Journal Entry Perpetual Inventory System is a system that records each inventory purchase, sale, or other transaction into an accounting journal. This system enables businesses to track changes in inventory levels on a continuous basis and keep an up-to-date record of its stock at any given time. It ensures that the costs associated with the purchase, sale, or other transaction are recorded for accurate financial reporting. This streamlined process reduces paperwork, eliminates errors, and promotes faster decision-making by providing timely information about inventory levels and values. By implementing this system, businesses can also save money as it reduces labor costs due to fewer manual calculations. Ultimately, it offers better control over inventory and greater visibility in tracking movements of goods.