Double-Entry Accounting Principle
Accounting operates on the double-entry principle: Every transaction is recorded in two places—Debit and Credit. This ensures accounting balance as what goes out from one side comes in on the other.
For an entry to be valid, the sum of the debit and the credit must be equal, which ensures accounting balance and allows the record to be properly saved and validated.
Example
For example: You pay a supplier so the money leaves the bank and the debt is reduced. This is recorded using accounting accounts, each with its own code and description.
How does Forge Flow handle this?
With ForgeFlow all gets easier as every sales invoice, purchase, or expense is converted into a journal entry. Enter into the ACCOUNTING menu, go to JOURNAL ENTRIES and you will be able to view all the records automatically generated by your actions. This reduces errors, saves time, and keeps everything organized.
Even though FF does it automatically, you can also create manual entries with all the necessary details.