Question 1

What Is Double Entry?

Accepted Answer

It refers to the two-sided record showing where the money came from, (a personal account, company account, a loan), and exactly where it went. It’s meant to be a roadmap of your money.

Question 2

What is the basic rule of double-entry bookkeeping?

Accepted Answer

The essential formula is Assets = Liabilities + Equity. Your assets are anything owned by your company, liabilities are outstanding loans you need to pay and equity is a reflection of how much your shareholders give you to run your venture.

Question 3

Is double-entry bookkeeping hard?

Accepted Answer

Yes and no. It takes some practice, but with time, patience, and organization you can get your double entries properly recorded. You can also reach out to a professional for a consultation or for regular visits to do the bookkeeping double entry for you.

Question 4

How do you do double entry?

Accepted Answer

Start with an accounting ledger divided into two sides – debit and credit. Then make sections for all your different accounts, (liabilities, goods, premises, etc), and record what money comes from which account, (debit), and where it goes, (credit).

For more information on bookkeeping services for your small business, please contact us so we can help you maintain all your accounts. We love to help out entrepreneurs like you and want to hear all about how we can help you today.

What is double-entry bookkeeping? Examples & Terms to know

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