Accounting Basics

Double-entry accounting affect's on your finance system.

Accounting transactions are often recorded in two columns: Debit and Credit. This can be visualized as a T-chart. The total on both sides should always be equal to each other.

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Double-Entry Accounting

Total debits will always equal the total credits. A debit to any account must be offset by one or more credits to another account. The matching totals at the bottom of these charts reflect the sum of debits and credits for the transaction, which is not the same as the order total.

It is important to know that Debit**/**Credit is not always positive/negative. Depending on the account type, Debit can increase or decrease the account balance, the same can be said for credit.

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