A double-entry system of bookkeeping helps businesses keep their books in balance. When recording a transaction, every debit entry must have a corresponding credit entry for the same amount, or vice-versa. Confused?

Now, this can be quite complicated in layman's terms but Annette made sure to explain these two accounting jargons very clearly. Don't let these accounting terminologies confuse you, using this podcast as a learning tool is extremely valuable.

Here are a few insights you’ll hear in today’s show…

• What are debits and credits? (...An example of the double entry bookkeeping on a furniture purchase, a tangible fixed asset.)
• How does debit and credit work when it comes to the Liabilities Account of the business?
• What effect does debit and credit have on Profit and Loss statements?
• A Cheat Sheet of how debit and credit works in the double entry bookkeeping.

If you’re struggling to understand the accounting for your business, reach out to Annette at [email protected].

Resources:

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Profit First Checklist

PF for UK biz

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