Journal Entries are done throughout the audit process to ensure accountants follow GASB standards for financial reporting. The Journal Entries tool in ClearGov is the workflow mechanism for adjusting financial values in the Financials table in a clean, auditable format.
Think back to accounting class, to ensure you stay “balanced” as financials change, accountants use double-entry bookkeeping - remember the debits and credits? That’s a journal entry. Technically, a user could do a journal entry without this tool, but it would be a multi-step process. For example, imagine the town received payments from citizens for property taxes of $1,000. They could go to the Financials table, find the property tax line item, and increase it by $1,000 by manually typing in the new number. To stay balanced, they need to go find the correct asset account, say Cash and Cash Equivalents, and increase it by $1,000. It’d be pretty easy to get out of whack with this manual process, right? The Journal Entries tool gives you a nice workflow interface to make all these changes all at once.
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