Simplifying Journals & Transactions – A Beginner’s Guide

Accounting begins with journals. These entries are the first step in recording every financial transaction a company makes.

In Bangladesh, many businesses still depend on Excel sheets or handwritten registers. This approach often results in errors, wasted time, and stress during audits.

Modern accounting software in Bangladesh changes this situation. Automating journal entries, linking them directly to transactions, and ensuring VAT compliance makes accounting faster, more accurate, and easier to manage.

Biznify ERP is one example. As a local solution with affordable pricing and dedicated support, it helps both small businesses and larger enterprises maintain reliable financial records.

What Are Journals & Transactions in Accounting?

A journal entry is the official record of a financial transaction. Every entry contains two sides:

• Debit – what the company receives

• Credit – what the company gives
  

A transaction is any activity that changes a company’s financial position. It could be a cash sale, the purchase of raw materials, or a salary payment.

Example in Bangladeshi Taka:

A shop sells goods worth Tk. 10,000 in cash.

• Debit: Cash Tk. 10,000

• Credit: Sales Revenue Tk. 10,000

Journals are the starting point of the accounting cycle:

Transaction → Journal → Ledger → Trial Balance → Financial Statements

Without reliable journals, ledgers, and financial reports cannot be trusted.

Key terms to keep in context: double-entry bookkeeping, chart of accounts, trial balance, and financial statements.

Hidden Challenges of Manual Journals in Bangladeshi Businesses

Manual journals create obstacles for companies of all sizes.

Small and Medium Enterprises (SMEs)

• Excel sheets are prone to human error.

• Missing receipts leave gaps in records.

• VAT mismatches are common when preparing tax returns. For example, a Dhaka-based SME reported losing nearly a full day each week correcting spreadsheet mistakes before moving to ERP. 

Larger Enterprises

• Combining journals from multiple branches is slow and complicated.

• Multi-currency transactions for imports and exports add extra work.

• Without role-based approvals, finance teams struggle to maintain control.

Compliance Risks

The National Board of Revenue (NBR) requires VAT mapping and audit-ready records. Manual methods often fail to meet these requirements, which can lead to audit delays or financial penalties.

Common issues include reconciliation errors, incomplete audit trails, delayed month-end closing, and gaps in compliance with IFRS standards.

How Accounting Software Simplifies Journals & Transactions

Manual journals demand constant attention and leave room for mistakes. Accounting software changes this by automating the process and linking entries to daily business activities.

Here’s how modern ERP systems, including Biznify ERP, simplify journals:

• Auto-creation of entries: When you record a sale, approve payroll, or update inventory, the system automatically generates the matching debit and credit. This removes the need for manual posting.

• Draft vs Approved journals: Entries can be saved as drafts, reviewed, and then approved by an authorized person. This provides control without slowing down daily work.

• Role-based access: Small businesses may only need owner-level control, while enterprises can set maker-checker workflows for accountants, managers, and CFOs.

• Real-time dashboards: Every approved journal update reports instantly. Owners and finance leaders can see cash flow, profit and loss, and VAT reports at any time.

For SMEs, automation reduces errors and saves time. For larger enterprises, it brings structure to multi-branch and multi-user accounting. Either way, accounting software makes journals more reliable and audit-ready.

Key Features to Demand in Journal Management Software

Not all systems handle journals the same way. When selecting accounting software in Bangladesh, look for these features:

1. Recurring journals: The system should let you schedule repeat entries for rent, salaries, or utilities.
   
   

2. Internal transfers: It should handle branch-to-branch or account-to-account movements without confusion.
   
   

3. Multi-branch and multi-currency support: This is critical for enterprises working across locations or with foreign suppliers.
   
   

4. VAT-ready records: Journals must align with NBR standards and produce audit-friendly reports.
   
   

5. Document attachments: Each entry should allow uploading invoices, vouchers, or receipts for future checks.
   
   

6. Audit trail: A clear log of who created, edited, or approved an entry helps during audits.
   
   

Biznify ERP covers all of these areas. It combines automation with compliance features so businesses in Bangladesh — from small shops to large corporations — can manage journals with confidence.

Step-by-Step: Creating a Journal in Biznify ERP

One of the advantages of Biznify ERP is how straightforward it makes journal entries. The system guides users through each stage, from entering details to final approval.

Follow these steps:

1. Enter the date and description
   Start by adding the transaction date and a short description, such as “Office Rent – February 2025.”
   
   

2. Select debit and credit accounts
   Choose the accounts from your chart of accounts. For example, Debit: Rent Expense, Credit: Cash.
   
   

3. Upload supporting documents
   Attach receipts, invoices, or vouchers to keep your records complete and audit-ready.
   
   

4. Save as Draft
   If the entry needs review, keep it as a Draft. This ensures no journal is finalized without checking.
   
   

5. Approve the journal
   Once reviewed, an authorized user can approve it. The status changes to Approved, locking the record from unwanted edits.
   
   

6. View in Journal List
   Approved journals appear in green, drafts in yellow. This makes it easy to track what’s pending and what’s finalized.

By using this process, businesses in Bangladesh can maintain accurate, transparent records. Small firms save time, while larger enterprises benefit from role-based approvals and stronger internal controls.

Practical Examples of Journals in Action for Bangladeshi Businesses

Accounting software is only useful if it reflects real business situations. Biznify ERP applies journal entries automatically in different industries, helping both small firms and large enterprises.

Retail business:
A retail shop records a cash sale of Tk. 50,000. Biznify posts the debit to Cash and the credit to Sales Revenue. At the same time, it records VAT Output and adjusts inventory.

Manufacturing company:
When raw materials are received through a Goods Receipt Note (GRN), Biznify creates journal entries for Inventory and Accounts Payable. Later, when goods are produced, the system posts Work in Progress (WIP) and Finished Goods accounts automatically.

Service company:
A consultancy firm records the office rent of Tk. 20,000 each month. Instead of entering it manually, Biznify schedules a recurring journal entry. The debit goes to Rent Expense, and the credit to Cash or Bank.

Case result:
One Biznify client, a mid-sized trading company in Dhaka, reduced its month-end closing process from seven days to just two after moving to automated journals.

These examples show how ERP systems reduce errors, keep VAT aligned, and save time across industries in Bangladesh.

FAQs on Journals & ERP Accounting in Bangladesh

What is the difference between a journal and a ledger?

A journal records transactions in the order they happen, showing both debit and credit. A ledger groups these journal entries by account type, such as cash or expenses, to create balances and prepare reports like the trial balance and financial statements.

Can ERP automate recurring journal entries? 

Yes. ERP systems can schedule recurring entries for expenses like rent, salaries, or utilities. This saves time, avoids missed postings, and keeps financial records consistent. Businesses in Bangladesh use this feature to simplify monthly transactions and reduce manual effort.

How does ERP ensure VAT compliance in Bangladesh?

ERP maps sales and purchase journals directly to VAT accounts as required by the National Board of Revenue (NBR). This creates audit-ready records and accurate VAT reports. It reduces the risk of mismatches and makes filing returns easier for Bangladeshi businesses.

Do enterprises still need ERP if they have accounting teams?

Yes. Even with dedicated accountants, ERP ensures consistency across branches, enforces approvals, and reduces errors. Enterprises often handle large transaction volumes, and ERP helps maintain control, generate real-time dashboards, and prepare accurate reports faster than manual accounting teams alone.

Is ERP accounting suitable for startups?

Absolutely. Startups benefit from automation early on by avoiding spreadsheet errors and saving time. As the business grows, the same ERP system can scale with more modules and users, making it a long-term solution for accounting and financial management in Bangladesh.

Final Thoughts – Simplify Journals with Biznify Accounting Software

Journals and transactions are the building blocks of accounting. Without them, reports lose accuracy, and compliance becomes difficult. Manual methods are slow and often unreliable, while automation makes the process faster, cleaner, and ready for audits.

Biznify helps businesses of all sizes manage journals with ease. From auto-generated entries to VAT-compliant records, it reduces errors and saves time. Small firms benefit from simplicity, while enterprises gain structure and control across multiple branches.

If your company is still depending on Excel or paper records, it may be the right time to change. Biznify offers a local, affordable solution designed to support growth and compliance in Bangladesh.