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.”

Double-entry Bookkeeping in Business Glossary - What is a Double-entry Bookkeeping?

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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