Double Entry Accounting is a bookkeeping method that ensures every financial transaction affects at least two accounts. This system is based on the principle that every debit entry must have a corresponding credit entry, maintaining the accounting equation: Assets = Liabilities + Equity. This approach helps to provide a complete picture of a company's financial health. By using Double Entry Accounting, businesses can track their financial activities more accurately and detect errors more easily. It enhances the reliability of financial statements, making it easier for stakeholders to assess the company's performance and make informed decisions.