ELI5: Explain Like I'm 5

accounting journal

An accounting journal is like a diary for a business. It's a book that holds records of all money coming in and out of the business. That way, the business can keep track of how much money it has. Every time the business buys or sells something, or pays somebody, the amount of money is written down in the accounting journal. This helps the business figure out how much money it has, and how it’s doing.