Journal Entries allow you to transfer funds between accounts and ensure that your financial records are balanced according to specific requirements. They should be considered as a final option for recording transactions.
It's advisable to use Journal Entries only if you have a solid understanding of accounting principles, or when advised by a professional accountant.
Here are a few reasons for creating a Journal Entry
To enter debits and credits manually, like in traditional accounting systems
To transfer money between income and expense accounts
To transfer money from an asset, liability or equity account to an income or expense account