Let business.com explain debits and credits in accounting software for small business. Understanding the double-entry accounting system is essential to running a business. Mike Berner, a finance writer at business.com, demystifies assets and liabilities, as well as debits and credits.

Time Stamps
0:00 Introduction to accounting software for small business
0:26 Understanding Assets and Liabilities
0:49 Debits and credits explained
1:40 How QuickBooks helps with double entry
2:22 Bank reconciliation
3:12 More Business.com resources

In the double-entry accounts system, every transaction that you make is recorded as both a debit or a credit in your accounting journal. Usually credits refer to liability and revenue, while debits are associated with asset and expense accounts. Your assets are what your business owns, while liabilities are what you owe.

Accounting software such as QuickBooks can help by doing the double-entry bookkeeping and other related tasks such as bank reconciliation. This helps you prevent accounting errors and better detect any instances of fraud.

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Mike Berner is a finance writer for business.com.

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