What is Double-entry Bookkeeping?
A definition of Double-entry Bookkeeping
“Double-entry bookkeeping is an accounting method where each transaction affects at least two accounts, balancing credits and debits.”

Business Glossary > What is Double-entry Bookkeeping?
Examples of Double-entry Bookkeeping in a Sentence:
Double-entry bookkeeping ensures accuracy in financial statements.
My accountant uses double-entry bookkeeping to manage our finances.
Transitioning to double-entry bookkeeping improved our financial oversight.
Why is Double-entry Bookkeeping Important in Business?
Double-entry bookkeeping is essential for accurate financial reporting, providing a system of checks and balances that improves the reliability of financial statements and helps detect errors and fraud.
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Associated Terms
Here are some associated business terms and synonyms for “Double-entry Bookkeeping”:
- Dual-entry System
- Double-entry Accounting
- Debits and Credits System
Company Example: IBM’s Use of Double-entry Bookkeeping
IBM employs double-entry bookkeeping to ensure the precision of its complex financial transactions. This method supports transparency and accountability across its expansive global operations.
Final Notes on Double-entry Bookkeeping
When utilizing double-entry bookkeeping, businesses benefit from enhanced accuracy and a clear audit trail, leading to better financial management decisions.
This has been a definition of Double-entry Bookkeeping meaning.
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