Debit and credit bookkeeping is an accounting practice that involves the recording of transactions in two separate accounts: a debit account and a credit account. The purpose of this system is to keep track of all business expenses and income, as well as other types of financial activity. It is an essential part of any company’s financial records and allows for accurate tracking over various periods of time. In simple terms, when something increases, it’s recorded as a debit and when it decreases, it’s recorded as a credit. This way, companies can quickly tell which direction their finances are heading in. With proper understanding and application of debit and credit bookkeeping, businesses can make sure their finances are in order and their overall accounting practices are sound.