Glossary
Accounting Basics

Journal Entry

By: Alec Hollingsworth
Updated:  
May 23, 2025

DEFINITION:

A journal entry is a formal record of a financial transaction in an organization's accounting system. Each journal entry documents the date, accounts affected, amounts debited and credited, and a brief description of the transaction. In nonprofit accounting, journal entries are essential for accurately tracking donations, grants, expenses, and other financial activities. Proper journal entries ensure the organization's financial statements accurately reflect its financial position and activities, supporting transparency and accountability. All entries must follow the principles of double-entry bookkeeping, where total debits always equal total credits.

Key Takeaways

Why It Matters

Accurate journal entries ensure reliable financial records and reporting.

Real World Example

How Aplos Helps

In Aplos, journal entries can be created and managed easily through the accounting module. The platform simplifies entering, reviewing, and editing journal entries, ensuring that your nonprofit's financial data is accurate and up to date. This supports compliance, audit readiness, and transparent reporting for organizations of all sizes.
launch trading trade finance startup icon

Try it yourself. Start your 15 day free trial

No commitment or credit card required

Try it For Free

Frequently Asked Questions

What is the purpose of a journal entry?

A journal entry records financial transactions, ensuring accurate tracking and reporting in your accounting system.

How do journal entries work in Aplos?

Aplos allows users to create, edit, and review journal entries easily, streamlining nonprofit bookkeeping and reporting.

Do journal entries always require both a debit and a credit?

Yes, each journal entry must have equal debits and credits to maintain balanced accounts according to double-entry accounting principles.

Can journal entries be edited after posting in Aplos?

Yes, Aplos lets users review and edit journal entries when needed, with proper permissions and audit trails for transparency.

Related Terms

Chart of Accounts
Fund Balance
Accrual Basis
Restricted Fund
Cash Basis
Modified Cash Basis

Aplos has everything you need in one place for streamlined nonprofit and church management.

Start A Free Trial

Copyright © 2025 Aplos Software, LLC. All rights reserved.

Aplos partners with Stripe Payments Company for money transmission services and account services with funds held at Fifth Third Bank N.A., Member FDIC.

Aplos

Our StoryTeam AplosCareersReviewsContact UsSecurity

Resources

AcademyAPIPartnershipsReferral PartnersAplos Status

Products & Features

Nonprofit SoftwareChurch SoftwareNonprofit AccountingChurch AccountingDonor ManagementNonprofit CRMOnline DonationsFundraising SoftwareText to GiveBill PayPayrollPrepaid Cards

For Customers

Support CenterTraining CenterFind An Aplos Advisor

Compare Us

Compare Quickbooks® For NonprofitsCompare Quickbooks® For ChurchesCompare Sage Intacct For Nonprofits

Services

Nonprofit Bookkeeping ServicesChurch Bookkeeping ServicesImplementation Services
Start A Free Trial

Copyright © 2024 Aplos Software, LLC. All rights reserved.

Aplos partners with Stripe Payments Company for money transmission services and account services with funds held at Fifth Third Bank N.A., Member FDIC.

Legal StuffPrivacy Policy
California Consumer Privacy Act NoticeDo Not Share My Personal Information