Credit and debit journal entries are the way that businesses record financial transactions in their books. These entries are critical for tracking spending, income, and other activity so businesses can keep tabs on how they’re doing financially. A credit entry is an accounting transaction that increases a business’s liabilities or equity accounts; it also increases their total assets. A debit entry is one that decreases a business’s liabilities or equity accounts while decreasing their total assets. When recording these transactions, it’s important to make sure that your debits side of the ledger balances with your credits side – this will help you easily track your finances and maintain accuracy in your books.