Double-Entry Bookkeeping: The Basics And The Advantages

services in Sydney Accounting

Double-Entry bookkeeping is one of the well-known accounting methods in the field of accounting. Double-Entry bookkeeping is used in almost all businesses whether they use a cash-based accounting method, or use the accrual accounting method. Double-Entry bookkeeping works wells with both the type of accounting methods. It is one of the common methods used for the purpose of bookkeeping. Double-entry accounting is an effective method that helps in minimizing your error and increasing the chance that your books end up being balanced.

Remember, in the case of double-entry bookkeeping, the main formula for the balance sheet, which is assets equals liabilities and equity, is extremely important. In the field of bookkeeping, if you want to adjust the balance of accounts, you should use debits and credits in combination. It is interesting to know that any debit or credit isn’t simply subtracted or added while doing bookkeeping. Debits and credits aren’t as simplified as they seem to be when it comes to bookkeeping. Sydney Accounting services can help you navigate through all your bookkeeping issues and help you maintain accurate and up-to-date records for your business, whether big or small!

As a thumb rule, always remember that when you are engaged in bookkeeping for a business, you must always keep the debit on the left side of the transaction whereas the credit comes on the transaction’s right. As long as each entry in your journal is accurate and up to date, double-entry accounting can help you keep your books in balance.