Unlocking the Power of Debits: A Key to Effective Financial Management

In accounting, a debit is an entry that either increases a company’s assets or decreases its liabilities. Every financial transaction has two sides — a debit and a credit — which must balance each other out. Debits and credits are the backbone of the double-entry accounting system.

Mastering Depreciation: A Smart Strategy to Boost Your Business Finances

For example, if you buy a computer for your business, instead of recording the entire cost in the first year, you can spread that cost over 5 years, which is considered the typical useful life of computer equipment.