Double-Entry Accounting is a system that ensures every financial transaction affects at least two accounts. This method helps maintain the accounting equation: Assets = Liabilities + Equity. For every debit entry, there is a corresponding credit entry, which keeps the books balanced and provides a clear picture of a company's financial health. This approach allows for accurate tracking of income and expenses, making it easier to identify errors and discrepancies. By using ledgers and journals, businesses can record transactions systematically, ensuring that all financial activities are documented and easily accessible for analysis and reporting.