Double Entry Bookkeeping
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Start Practicing Double Bookkeeping Entry for Better Kept Accounts
To truly know what’s going on, you need to track each expense as a debit (decrease) and credit (increase). That means if you spend $500 in food, you’ll record -$500 in your cash account and +$500 in your inventory account. Letting you know where the $500 went to. If you don’t add the amount spent or gained twice, there won’t be an accurate of tracking where it went.