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 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.