Moneydance Help : Double-Entry


In double-entry accounting, every transaction is a "link" between two accounts. One account is debited the amount of the transaction, and another account is credited with the same amount. This ensures that all transactions are categorized and accounted for.

For instance, when entering a transaction into a checking account register, you need to specify an additional account for the transaction. In specifying this additional account you essentially assign a category to the transaction. Specifying an account (or category) for every transaction allows you to categorize income and expenses to help you determine where your money is being made and spent.

Double-entry also enables you to easily represent a transfer of funds from one account to another. Simply create a transaction in one account, and specify the additional account to or from which you want to transfer funds. A debit in one account will show up as a credit in the other account.