Double-entry accounting is a method where every transaction is recorded in at least two accounts: a debit in one and an equal credit in another. Because debits and credits must always balance, the system is self-checking and produces reliable financial statements.
In plain terms
It is the standard basis of real accounting. Each event — an invoice, a payment, an expense — affects two accounts, keeping the accounting equation in balance.
Example
When a client pays an invoice, cash increases (a debit) and the amount they owed decreases (a credit) by the same figure.
Why it matters
Double-entry produces trustworthy, audit-ready books and proper statements like the Balance Sheet and Profit & Loss — unlike a simple list of totals.
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