Understanding debits and credits is a critical part of every reliable accounting system. However, when learning how to post business transactions, it can be confusing to tell the difference between debit vs. credit accounting.
As a general overview, debits are accounting entries that increase asset or expense accounts and decrease liability accounts. Meanwhile, credits do the reverse.
To help you better understand these bookkeeping basics, we’ll cover in-depth explanations of debits and credits and help you learn how to use both. Keep reading through or use the jump-to links below to jump to a section of interest.