A journal entry is an accounting note that records financial transactions. It documents each individual transaction by indicating the debit and credit side of the account, including relevant details such as date, amounts and accounts. Journal entries form the basis for preparing financial statements.
Requirements of a journal entry
A journal entry must meet the requirements of accuracy and completeness, as set out in financial reporting laws and regulations. This includes correctly documenting each financial transaction, stating the date, amount and accounts involved. References to the relevant laws and regulations as contained in the Accounting Standards, which is based on IFRS principles, among others, can be useful to ensure that journal entries comply with all requirements. Journal entries under IFRS must meet the requirements of relevance, reliability and comparability. This is laid down in the standards of the International Accounting Standards Board (IASB).
Automatic journal entries with TriFact365
TriFact365 supports companies in making journal entries by automating administrative processes. This includes capturing and processing invoices. This uses advanced OCR technology and smart algorithms to present journal entries automatically. This has benefits such as time saving, accuracy and efficiency in accounting.