Journal Entry
Definition
A record of a financial transaction in the general ledger, showing debits and credits. Manual journal entries handle adjustments, corrections, and non-standard transactions that don't originate from invoices or bills.
Related Terms in Core Accounting
Net Profit
The bottom line — revenue minus all expenses including COGS, operating costs, interest, and taxes. Also called net income. The P&L statement's final figure.
Profit & Loss Statement (P&L)
Also called an income statement. Shows revenue, expenses, and profit or loss over a period. Essential for understanding business performance. HelloBooks generates P&L reports automatically with AI-powered insights.
Trial Balance
A report listing all general ledger accounts and their balances to verify that total debits equal total credits. Used to check for errors before preparing financial statements.
Bookkeeping
The day-to-day recording of a business's financial transactions — sales, purchases, receipts, and payments — into organized accounts. Bookkeeping is the foundation that accounting builds on: accurate books feed the general ledger, financial statements, and tax filings. HelloBooks automates bookkeeping by importing bank feeds, categorizing transactions with AI, and posting double-entry records in real time.
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