Are journal entries relevant in the real world, or are they merely theoretical exercises?
In school, we frequently practice creating journal entries for various transactions. But in actual Accounting roles, do professionals really record these entries by hand?
One response
Great question! While journal entries may seem theoretical when you’re learning in school, they are very much used in the real world. However, the way they are recorded has evolved with technology.
In practice, many companies use Accounting Software that automates the journal entry process. These programs allow accountants to input transactions more efficiently, often with pre-defined templates that simplify the process. Despite this, the underlying principles of debits and credits, which you learn in school, still apply.
Accountants do still make manual journal entries, especially for adjusting entries at month-end or year-end, or for transactions that might not have a straightforward electronic record. This requires a solid understanding of the fundamental Accounting principles you learn in school.
So while the tools may have changed, the foundational knowledge from your journal entries in school is still very relevant and essential for real-world Accounting!