debits and credits

welcome to another video guys my name is Bill Hanna and this is the financial controller channel where I teach you tips and tricks to supercharge your accounting career I've been in the accounting game for over 15 years I started out as an auditor then I went to become a staff accountant senior and then manager and then now a controller and the whole purpose of this channel is to give you the summary and the juice of my experience over the last 15 years so that you can apply to your own career and learn from it So today we're talking about how to record a journal entry and journal entries are the building blocks of the financial statements.

As we all know, business transactions get recorded in the form of debits and credits as a journal entry that will go to a trial balance.

The purpose of which is to make sure that all of our debits and credits are equal.

And then from a trial balance, we can summarize that into a financial statement, which is a balance sheet to the income statement and the statement of cash flow.

And in this video, I'm going to show you the easiest way, the simplest way to think through any journal entry and never forget your debits and credits.

And we'll begin by looking at why, why we need debits and credits or journal entries in the first place.

If we really understand on a deep level why we need them, we will truly never forget the method of how to record them.

So we'll look at why, and then we'll look at three easy steps to record any journal entry.