Debits and Credits Accounting is the practice of recording financial transactions as either a debit or credit. Debit entries are recorded on the left side of an account while credit entries are recorded on the right side. This double-entry system ensures accuracy in accounting records and creates a transparent trail of financial activity that can be examined later. Debits and Credits Accounting also helps to create an organized system for tracking expenses, income, liabilities, and assets. By using this system of accounting, businesses can stay up-to-date on their finances, helping them make more informed business decisions.