Financial Glossary
Debit
A debit is one half of a double-entry bookkeeping transaction, recorded on the left side of an account. Debits increase asset and expense accounts and decrease liability, equity, and revenue accounts. Every debit must be matched by an equal credit so the books stay in balance. The everyday banking sense of "money debited" from an account reflects the same idea, where the bank reduces its liability to you.
Problem & Application
For an owner-operator reading their own books, knowing that a debit can mean very different things depending on the account is what separates a clean ledger from a confusing one. Recording a customer payment, a supplier bill, or an owner draw each involves debits in different places, and getting the side wrong throws off the financial statements. This trips up campground, STR, and hospitality operators who run their own QuickBooks before bringing in help.
In Short
A debit is simply a left-side entry whose effect depends on the account type, not an automatic increase or decrease. Mastering that distinction is foundational to accurate books.