Double Entry Bookkeeping
Double entry bookkeeping is a method of accounting for activity by ensuring that every transaction has an equal number of debits and credits. It is the most commonly used accounting system that complies with GAAP (General Accepted Accounting Principals), and is the system we use.
Advantages include:
Reduced errors and fraud identification.
Debits and credits will always be in balance. If you write a cheque for an
expense, the amount deducted from your bank account will be in balance with the expenses recorded.
Financial Statement Reporting
You can alway produce a profit and loss, balance sheet and other reports
at any point in time, because you always have all the information you need for it.
Trial Balances
Trial balance reports are a way of seeing the balance on all accounts.
With double entry bookkeeping, your trial balance will always be correct in the sense
that all debit and credits will balance each other.
