Double Entry Bookkeeping is an accounting method that records each financial transaction in two accounts: a debit and a credit. This system ensures that the accounting equation, Assets = Liabilities + Equity, remains balanced. For every entry made, there is an equal and opposite entry, which helps maintain accuracy and provides a clear financial picture. This method allows businesses to track their financial health more effectively. By using Double Entry Bookkeeping, companies can easily identify discrepancies, monitor cash flow, and prepare accurate financial statements, such as the Balance Sheet and Income Statement.