The Debit and Credit Ledger is a record-keeping system used to track financial transactions. This system allows businesses to track their income, expenses, and assets as well as determining which accounts need to be debited or credited at any given time. By using the ledger, businesses can also see how cash flow is affected by any changes throughout the accounting period. With an accurate representation of all their transactions, businesses can make educated business decisions that will increase their profits and protect them from potential losses.