Doppelbuchung

Doppelbuchung, also known as double-entry bookkeeping, is a fundamental accounting principle that requires every financial transaction to be recorded in at least two different accounts. This method ensures that for every debit, there is a corresponding credit, maintaining the fundamental accounting equation: Assets = Liabilities + Equity. The core idea is that no transaction can occur without affecting at least two elements of this equation.

When a transaction happens, it impacts two accounts in opposite directions. For example, if a business receives cash for a sale, the cash account (an asset) increases, while the sales revenue account (which impacts equity) also increases. Conversely, if a business pays for an expense, the expense account increases (reducing equity), and the cash account decreases. This dual recording provides a self-checking mechanism.

The primary benefit of Doppelbuchung is its inherent accuracy. By requiring every entry to have a balancing counter-entry, it significantly reduces errors and fraud. If the debits and credits do not balance, it immediately signals an error that needs to be investigated. This system forms the basis for creating financial statements like the balance sheet and income statement, providing a true and fair view of a company's financial position and performance. It is a universally accepted accounting practice employed by businesses worldwide.