In college, I learned about these concepts and immediately wanted to apply them to my own personal finances. But all I had was Microsoft Excel. Turns out, Microsoft Excel is all you need. In this article, I will detail how to create double-entry bookkeeping system in Excel that will help you keep your money sorted just like a good accountant. What is Double-Entry Bookkeeping and Why Should You Use It?ĭouble-Entry Bookkeeping is the system used in accounting to ensure that every transaction tells an accurate story about where the money came from and where it went. It is a bit similar to Newton’s Third Law. This is the physics concept of every action having an equal and opposite reaction. The accounting principle behind the double-entry system states that for every debit to one account there is an equal credit from another account. The money had to have come from somewhere and gone into somewhere. In basic accounting practices, where the money came from is considered a credit and where the money goes is considered a debit.
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