The purpose of your journal is to record all the transactions you perform in the business. These transactions are also referred to as entries.A business transaction is first recorded in a journal, also called a Book of Original Entry. Your journal keeps a record of all your business transactions, tracking them in chronological order, as the case may be, and entering each one. It can be fired off to your accountant or bookkeeper and pays regular interest on the money you've invested in it.
Business transactions are recorded by the parties involved. They are usually done with a pen and paper. Computers, smartphones, tablets or other devices can help us to record all of these interactions and we can create a digital version of these records digitally and annotate them later on. These “recordings” will allow you to look back at what happened in your business transactions and analyze them for better understanding of the results achieved so far.