{"id":220571,"date":"2025-10-17T11:01:14","date_gmt":"2025-10-17T09:01:14","guid":{"rendered":"https:\/\/easy-software.com\/?post_type=glossar&p=220571"},"modified":"2025-10-17T11:01:16","modified_gmt":"2025-10-17T09:01:16","slug":"double-entry-accounting","status":"publish","type":"glossar","link":"https:\/\/easy-software.com\/en\/glossary\/double-entry-accounting\/","title":{"rendered":"Double-Entry Accounting"},"content":{"rendered":"
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It ensures that every business transaction is always recorded completely and traceably in a dual system<\/mark> of debits<\/mark> and credits<\/mark>.<\/p>\n\n\n

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What Is Double-Entry Accounting?<\/h2>\n\n\n\n

Double-entry accounting is a core method in financial bookkeeping.
Each transaction is recorded twice<\/strong>: once as a debit<\/strong> and once as a credit<\/strong> on two separate accounts.
This creates a complete and accurate picture of a company\u2019s financial position.<\/p>\n\n\n\n

In Germany, this method is legally required for corporations and larger sole proprietorships (\u00a7\u202f238 HGB<\/a>).
In the US, it is standard practice for businesses of all sizes and forms the basis for both the balance sheet<\/strong> and the income statement<\/strong>.<\/p>\n\n<\/div>\n\n\n

How Double-Entry Accounting Works<\/h2>\n\n\n\n

The principle is simple but powerful: every transaction affects at least two accounts. Example:<\/strong> A company purchases office supplies on account.<\/p>\n\n\n\n