Accounting event

An accounting event is anything that alters the information reported in an organization’s financial statements. This event is recorded as a business transaction through the entity’s bookkeeping system, either using a journal entry or an entry through one of the modules in the accounting software.

An accounting event can be triggered by an action external to the organization, such as the sale of goods or services to a third party, or the sale of an asset. An event can also be internal, such as a transaction to record the depreciation on an asset.