Welcome to a clear practical Beginner s Guide that explains how money moves in small business books This guide introduces the double-entry system and the core equation Assets Liabilities Equity Every transaction touches at least two accounts and must keep the ledger in balance Debits record money moving into an account and credits record money leaving one The effect on an account s balance depends on the account type You will see how cash equipment loans payroll and sales flow through accounts and affect financial statements The chart of accounts gives structure to balance sheet and income statement items Visual tools like T-accounts and formal journal entries make rules practical We also explain why a bank s credit can look opposite to your books By the end you will have a simple working vocabulary and steps to record common transactions in a reliable system https youtu be ONDONJwESw feature shared Key Takeaways Double-entry means each transaction affects at least two accounts Debits and credits change balances depending on account type The chart of accounts keeps reporting consistent across periods T-accounts and journal entries help you visualize and record activity Common examples include buying equipment taking a loan and paying salaries Clear basics reduce errors and improve financial statements for lenders and investors Why Debits and Credits Matter for Beginners Beginner-friendly bookkeeping ties every money movement to two linked entries so totals always balance This two-sided system powers invoicing payroll vendor payments and tax readiness for U S small business owners... Login to read full