Journalizing does not include recording transactions for individual revenue and expense accounts. Instead, it refers to the process of summarizing transactions from multiple revenue and expense accounts into an aggregated ‘general ledger’. This aggregation allows companies to provide a more holistic financial picture instead of staring at data on a per-transaction basis. Journalizing is also used to create financial statements, including the balance sheet and income statement. Ultimately, journalizing is a critical step in understanding and communicating your company’s financial performance.