An accounting transaction is a business event having a monetary impact on the financial statements of a business. It is recorded in the accounting records of the business. Examples of accounting transactions are: Sale in cash to a customer Transactions are recorded first in the journal and then posted to a ledger. Financial transactions involve a single entry in the journals, stating its date, amount and description. 

The four types of financial transactions that impact businesses are:

  1. Journal
  2. Invoices
  3. Receipts and Payments
  4. Fund Transfers
  5. Balance Transfer
  6. Budget Entry