The Double Entry Accounting System is a structured approach to the practice of financial accounting. It relies on the fundamental premise that all transactions must have a corresponding credit and debit entry, with each entry recorded as either a “debit” or “credit.” This allows for accurate record keeping and more precise tracking of financial transactions. By capturing transactions in two parts, Double Entry Accounting ensures that mistakes can be eliminated and financial statements remain accurate. In short, this system helps businesses keep track of their finances with greater assurance and efficiency.