California Business Portal

How should I record my business transactions?

Business transactions are ordinarily summarized in journals and ledgers; many of them are in computer software format.

A journal is where you record each business transaction. You may have to keep separate journals for frequent transactions, such as a sales journal, a payroll journal, or a check disbursement journal.

A ledger is where you record the totals from all of your journals. It is organized into different accounts.

Whether you keep journals and ledgers depends on the business type. For example, a recordkeeping system for a small business might include the following items:
  • Business checkbook
  • Daily summary of cash receipts
  • Monthly summary of cash receipts
  • Cash & Check disbursements journal
  • Depreciation worksheet
  • Employee compensation records

Did you find this article helpful?

Haven't found what you're looking for, send us an email