Business Fundamentals

The method of keeping track of your business transactions (also known as recording them) is called double entry book keeping. Double Entry (book keeping) Accounting can be kept very simple.

Each accounting entry (an accounting entry is what we write down for each transaction your business has) will have at least one debit and one credit. You can think of it as one plus and one minus.

Because they are equal and opposite, accounts always balance. We do this for EVERY transaction, hence at the end of the accounting period all the accounts balance. That means debits are equal to credits.