Debit and Credit in Accounting

The functions of debit and credit in accounting must be understood in detailed by the expert accountant. Primary because the accounts of any business are comprised of a series of debits and credits. Also referred to as income and outgoings, these are the transactions that determine the financial viability of the business.  Accountants must have a strong grasp of the difference between debit and credit in accounting, in order to provide a reliable service. However, the role of the accountant goes far beyond tracking expenses and calculating revenues. By understanding the definition of debit and credit and their functions, strategies can be devised to minimize costs and maximize income. It is effectively a form of strategic risk management – all of which falls under the daily duties of the professional accountant.

This tutorial introduces debits and credits from a corporate standpoint, focusing on debit meaning in accounting, debit and credit difference, data analysis and strategic decision-making. Discover how to work with key annual reports, establish workable profit margins and use ratios to guide financial decisions. Explore a series of useful ratios in-depth and find out how proactive and efficient debit credit accounting can transform the financial performance of a business.