Accounting Credit and Debit are two key terms used in the world of bookkeeping and financial record-keeping. Put simply, a Credit is an entry that increases assets on one side of a balance sheet and decreases them on the other; meanwhile, a Debit is the opposite – an entry that decreases assets on one side of a balance sheet and increases them on the other. In other words, to increase assets we use Credits, while to decrease assets we use Debits. To best understand this concept, think of your bank account: when you deposit money, it’s recorded as a Credit, while with withdrawals, it’s recorded as a Debit. Therefore, whether you’re talking about companies or individuals, properly understanding how to make proper Accounting Credits and Debits is essential for maintaining accurate financial records.