What is the process of transferring information from a journal to a ledger called?

The process of transferring information from a journal to a ledger is called posting. Posting is a fundamental aspect of the accounting cycle, where data recorded in the journal—a chronological record of transactions—is systematically organized into the appropriate accounts in the ledger, paving the way for financial statements and accurate record-keeping.

This process is essential because it helps in maintaining a clear and organized financial system, allowing for easier tracking and summarization of financial activities. Posting ensures that all transactions are accurately reflected in the financial records, which is crucial for generating reports that reflect the financial status of a business or estate.

In contrast, auditing typically involves reviewing the financial records to ensure accuracy and compliance with regulations, while balancing refers to the process of ensuring that debits equal credits in financial records. Reconciliation is the process of comparing two sets of records to ensure they are in agreement, often used to verify balances between entries in different accounts.