Bookkeeping

Every business needs a way to track its income and expenses. This is where accounting systems come in, with two main options: cash basis and accrual basis. Understanding the difference between these two will help you pick the right system for your business. Cash Basis Accounting Think of cash basis accounting as tracking money in […]

In bookkeeping, debits and credits are foundational concepts used to record financial transactions. They form the basis of double-entry accounting, a system that ensures accuracy and maintains the balance in the accounting equation: Assets = Liabilities + Equity. Let’s use some practical examples to illustrate the concept: Debit (Dr): Office Supplies (Asset) $500Credit (Cr): Cash