Double Entry Bookkeeping
Double entry bookkeeping is an accounting system where every financial transaction is recorded in at least two accounts, with equal debits and credits to maintain the accounting equation (Assets = Liabilities + Equity). It ensures accuracy by providing a self-balancing mechanism that helps detect errors and fraud. This method forms the foundation of modern accounting and financial reporting for businesses worldwide.
Developers should learn double entry bookkeeping when building financial software, accounting systems, or any application that tracks monetary transactions, as it ensures data integrity and compliance with accounting standards. It is essential for creating reliable ledgers, generating accurate financial statements, and implementing audit trails in fintech, e-commerce, or enterprise resource planning (ERP) systems.