Jumping into accounting can seem scary but trust us, it isn’t. We will try to make it as simple as possible!
a) With our automated accounting tool, you don’t need to worry about terms like debit or credit. When you collect or make a payment, connect your bank account to Open or manually enter the transactions; our platform will take care of it. The only thing you need to make sure is to tag the transactions properly. Otherwise, untagged transactions will automatically come under ‘Uncategorized’.
b) Want to make sure your transactions are accurate? Just head over to the ‘Accounting Transactions’ option under the ‘Finance’ section. Here you can see all the transactions in debit or credit sorted account wise.
c) Asset Accounts: In simple words, these include bank accounts like checking or savings:
Deposits are debits that are marked in green on the transactions page.
Withdrawals are credits that are marked as red on the transactions page.
d) Liability Accounts: Again, very simple. Just consider loans and credit cards as liability accounts.
e) Received payments (transactions "paying off" your credit card) are debits. On the transactions page, this will be a green transaction. Expenses/purchases are credits. On the transactions page, this will be a read transaction. That's a pretty basic overview of debits and credits!