Debit and credit accounts are the foundations of accounting that allow businesses to track their financial transactions. A debit account is an asset or expense account that increases in value with a debit entry and decreases with a credit entry. Credit accounts, on the other hand, refer to liability or revenue accounts that increase with a credit entry and decrease with a debit entry. In other words, when you add money to your account it is a credit, and taking away money is a debit. This system of debits and credits helps businesses accurately assess the current state of their profits, debts, and revenues by allowing them to “balance the books” at any given time.