Credit and debit are two fundamental financial concepts that form the basis of accounting. In a nutshell, credit means an increase in one account and a corresponding decrease in another while debit means a decrease in one account and a corresponding increase in another. As such, they’re used to record transactions, track money coming into or leaving an organization or person, and designate whether something is an asset, liability, income, or expense. The credit-debit relationship is one of the most important parts of accounting – it’s essential for keeping accurate records and ensuring there’s always enough cash flow to keep the business running smoothly.