Debit versus credit accounting is a system of accounting that uses two columns to record transactions: one for debits and one for credits. When an account is debited, there must be an equal credit on the opposite side of the transaction so that the sum of all the accounts still equals zero. Debits and credits help bookkeepers and accountants create financial reports that keep track of income, expenses, assets, and liabilities. By understanding how debits and credits work, businesses are able to keep a more accurate picture of their overall financial health.