The Swiss accounting journal

The accounting journal

When you run your own business, there are a number of accounting periods that you cannot avoid. Even if these vary according to your legal status, some remain common. When it comes to accounting, the accounting journal is one of them. Here are three key points to bear in mind.

Accounting journal: what is it?

Also known as a ledger, the accounting journal is one of the obligations of companies. It is an accounting document that provides a record of the company's financial transactions over a given period.

The accounting journal is a financial management tool whose purpose is to provide a chronological record of every movement of funds initiated by the company. It must be completed on a continuous basis, taking into account the nature of the transactions carried out. In other words, it must specify whether the transaction is a sale, a purchase or a cash transaction, for example.

Because of its function, the accounting journal must be both meticulous and detailed. Even if there are no pre-established or imposed forms, there is certain information that it absolutely must contain. The format also depends on the company's preferences. It can be handwritten or digital. However, for reasons of security and data backup, the digital format is the most appropriate. Accounting software makes it easy to obtain.

What is the importance of the accounting journal?

Given its role, the accounting journal is of great importance within a company. First and foremost, it serves as aninformation tool on financial transactions. It keeps a record of each transaction, enabling reliable monitoring.

Secondly, it serves as a basis for control. Certain transactions may need to be checked at a later date. The accounting journal makes it easier to carry out these checks. It provides a guarantee and proof of legality and compliance for the company.

What does the accounting journal look like?

The general presentation of the accounting journal depends on the company. However, the information included in each accounting entry is fixed. These are

• the date of the transaction
• the numbers of the accounts debited and credited;
• the supporting documents for the transaction ;
• and the total amount of the transaction.

This information is used to locate a financial transaction over time, to trace the funds and to check that all the documents are in order.