What is a register journal?
A ‘journal’ is a book/note that contains records of a person. Similarly, a register journal (also known as register log or register history) is similar to a diary of a business. It is where all details about transactions are recorded for reporting or future reference. In other words, a journal is the primary information entered into the system, which will be kept as first-place records for any further analysis.
What is often included in a register journal?
When entering information in the register journal, there should be sufficient information about the business transactions. They often include, but not limited to:
- Date of transaction
- Payment method (cash/debit/credit/etc.)
- Credit/debit account title (if applicable)
- Description of each particular journal entry
- The person who enters the information
Benefits of register journal
In any type of business, keeping records of transactions is essential to have an overview of all activities happening in the company. Some of the benefits of register journals are:
- Keep an accurate record of transactions: Entering the details immediately in a journal helps to justify any disparity that can arise in the future.
- Save for future reference: Having a history of transactions with detailed descriptions helps businesses to save information for any future reference. For example, managers can see which transactions were made at a specific date in the past.
- Support financial reporting: Data from the register log can serve as a reference for employees, in order to make any report related to finances.
- Avoid theft among employees: Having a clear register journal can prevent theft or money losses, especially in the cash register. Managers cannot be in the store every time, so keeping a log helps them to monitor the activities and employees.