What is double entry bookkeeping?

Many people struggle with understanding this accounting concept, but it’s worth persevering, because it’s a fool-proof way to make sure that the numbers in your accounts are correct. Every number is entered twice, and then the accounts are balanced. If they don’t agree, you know you’ve got a mistake somewhere. This simple method has also often been used to uncover major frauds by employees. Image Credit What are debits and credits? The whole concept of double entry bookkeeping rests on debits and credits. As well as cash in and out,…

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