Conversely, credits increase income and liability accounts and decrease expense and asset accounts.įortunately, in QuickBooks for Mac you rarely need to worry about how or what to debit or credit. Debits increase expense and asset accounts but decrease income and liability accounts. Debits and credits affect different types of accounts differently. In double-entry accounting, every transaction records in at least two accounts-in one as a debit and in the other as a credit. QuickBooks uses double-entry accounting-the worldwide standard for business accounting. Finally, they create an invoice and see all of its line items show up as checking-account deposits.

Then, they enter a credit-card charge and see a matching payment beneath. They write a check and see an offsetting deposit appear right below the check in the register. QuickBooks newcomers who enter transactions for the first time are sometimes mystified by what looks a bit strange.